is FBT recoverable from a customer ?

Can someone tell me is FBT is recoverable from a customer.My client is recovering FBT by adding it in a service charges and than charging service tax on gross amount.Is this correct?  

taran

Replies (4)

first of all there is no concept like recovery of FBT from customers because it is tax on expenditure only. It is not an indirect tax. service tax is to be calculated on the gross figure only.

Dear Reder,

There should be employee-employer relation for charging FBT. Therefore customer is not liable to pay FBT at all.

Thanks

 

Dear all,

I could not pay the TDS of the AY 08-09 before 31st march. i paid it on 1st april, now my CA is telling the entire amount of the value on which was the TDS calculated will be disallowed and be added in the profit. not only the TDS liability entire amount of the transportation which i paid in the year i.e. 1.5 lac appx.

please let me is this true.

Your CA is right. all credits/payments upto 29/02/08 will be disallowed, if the related TDS is not deposited on or before 31/03/2008. However the disallowed expenditure will be allowed in the year in which the TDS is deposited.

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