FBT on reimbursment

Hi guys i need urgent reply on this query.

Suppose a company has incurred conveyance expenses for a client's assignment and the same has been debited under the head 'Conveyance' as Indirect expenses. Now later if the company gets reimbursment for the conveyance expenses incurred by it from the client and the same amount is credited under the head 'Conveyance', then do I still have to charge FBT on whatever has been debited under the head 'Conveyance' or do I have to charge FBT on the difference of Debit and Credit under the head 'Conveyance'??

 

Replies (3)

In my opinion you have to pay FBT on amount paid for conveyance

and amount reimbursed from party is your income.

Thanks

Praveen

 FBT is paid by the person who has incurred the expenses.  Even if expenses are reimbursed by the client , FBT has to be paid. Amount reimbursed by the client will be credited in the account and net amount if any will be taken to expenses a/c.

Thank u so much for ur reply...can u pls mention a relevant section for this.

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