fBT ON INTERNET CHARGES

WHETHER INTERNET CHARGES FOR A MFG COMPANY INLUDED IN FBT OR NOT? IF INCLUDED UNDER SEC. 115WB(2)(A) OR 115WB(2)(J)?

Replies (3)

Expenditure incurred on internet services is not taxable under FBT either u/s 115WB(2) (A) or (2)(J).

1.Whereas, sub clause (2)(A) covers expenditure incurred on entertainment - expenditure in connection with exhibition, performance, games or sport.

2.On the hand, subclause (2)(J) covers expenditure incurred on use of telephone, excluding leased telephone lines, but including mobile phones. This clause too excludes use of internet services.

INTERNET CHAGES INCURREDBY THE COMPANY IN HIS OFFICE PRIMESES  FOR  THE COMPANY WORKS  IS NOT LIABLE FOR FBT. HOWEVER IF THIS WILL PROVIDE TO  THE EMPLOYEE FOR ENTERTIANMENT OR HIS PERSONAL PURPOSE THEN IT WILL TAXABLE

 

Internet charges incurred by a company will not come under FBT.

[In sec 115WB(2)(a) it is only about entertainment expenses and In sec 115WB(2)(j) is only about telephone including mobile and nowhere it talks about  internet charges]

 

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