FBT on Travelling Expenses

Travelling Exp. incurred attracts FBT whether reimb to employee or not. It is provided in Act itself. No need to refer any Circular or Case Law. Only exception is Travelling Exp. reimb to Professionals, Fixed Travelling allowances & LTA to employees.

If urs is not a Proprietory Concern, then FBT on Travelling Exp is attracted.

PAWAN (CA FINAL)

Travelling Expenses wheather incurred or reimbursed to employees Except Fixed Travelling allowances & LTA to the employees subject to allowed under this act, FBT shall attract .

Further if traveling exps. is ticketing only then only 5% value shall be taxable otherwise 20% taxable.