a partnership firm is incurring tel exp in respect of t landline phones installed at t firm .......these phones r exclusively usd 4 t purpose of buss.....
so r these tel exp chargeable 2 fbt ???
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fbt telephone exp
Replies (18)
yes still it would be cover under fbt
how can it be covered under fbt
wouldint it be covered under expenses
as it is installed in business primises and used for the same purpose
yes it cover in the criterea of 20 % fbt
It will still be taxable as FBT as it is specificaly mentioned in sec115WA(1) that FBT is payable on FB provided or deemed to be provided. & telephone is covered u/s 115WB(2)(j)
There is no doubt regarding the application of FBT in this case.
My friend please do not create confusion,FBT is on those benefits which are either provided or deemed to be provided to the employees & telephone expenses are deemed to be provided as a benefit to the employees whether it is actualy provided or not.
Although it will be admisible as expenditure but FBT will have to be paid if there is even a single employee in the entity.
Further to add fbt will be paid on whole amount even if it is expended wholly & exclusively for business of the assessee.
yes, it will be liable for fbt...
FBT is simply a tax on expenditure incurred by the employers!
IS FBT APPLICABLE IN CASE OF A TRUST (NON CHARITABLE) WHEN IT HAS NO EMPLOYEE BUT INCURRING EXPENDITURE WHICH ARE LIABLE FOR FBT U/S 115WB OF I.T. ACT, 1961.
BRAJESH AGARWAL
pls. give me full descriptions in FBT on telephone Exp. (landline and as well as mobiles)
yes. every telephone whether its for office or factory is liable for FBT including mobile phones.
No. any person not having employees is not liable to FBT.
FBT not applicable only on Individual, HUF,ccompany u/s 25 etc.
yes there would be FBT. It is difficult to ascertain the bifurcation between the calls for Personal and Business purpose.
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