Finance Act, 2008 made some significant amendments to the provisions relating to the levy of FBT. With a view to rationalizing the provisions of FBT, Section 115WB (2) was amended. Now, Expenditure on guest house will not be considered for FBT.
But the telephone exp. are still in the purview of FBT
The mobile phone expenses and other telephone expenses will be subject to the FBT. It will be of no avail to state that these are only official expenses. Even in such a case the FBT will be payable by the employer.
but as per section 115WB (2)(J) The use of telephone (including mobile phone) other than expenditure on leased telephone lines is liable for FBT.
Therefore it is clear that there is no FBT on leased line telephone