fbt on pvt.ltd. co.with no employees

Dear Sir, A pvt ltd. co. has only two directors to whom no salary or any perquisite is paid.The company has no other employee.But there is trading activity and expenses are incurred which come within the ambit of FBT. 1)Whether above company is covered under FBT? 2)Whether directors(who are not paid any remuneration)come within the definition of 'employee' for the purpose of FBT? 3)Suppose there are no expenses incurred which come under ambit of FBT & if above two directors come within the defn. of 'employee',whether the company has to file 'FBT' return?
Replies (1)
Dear friend,

1) Even though the directors are not paid remuneration,the Pvt.Ltd., company is covered under FBT provisions.

2) employee means - director employee for FBT provisions, whether you pay the director or not.

3) Because of the above, the PVT.LTD.CO. has to file FBT return even though, there are no expenses incurred which come under ambit of FBT( i.e. you have to file NIL return ).

Thanks & Regards,

MANJUNATH

m.chanageri @ yahoo.com  

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