FBT on Cab rentals (Income Tax)

This query is : Resolved

Bala Abiramy

( Author )
07 October 2008

Hi all,
Does the expenses on transport services provided to the employees for commuting between the home-ofice-home be considered as fringe benefits given to the employees?Does it attract tax?

CA RAMESH KUMAR AHUJA

( Expert )
07 October 2008

Yes, it will attract FBT

Venkat Rao Marella

( Expert )
07 October 2008

Please reffer question no 104 of circular 8/2005 issued by CBDT as reproduced below which gives the answer:

104. Whether expenditure incurred by the employer for the purposes of providing free or
subsidized transport for journeys to employees from their residence to the place of work
or such place of work to the place of residence would attract FBT?
Ans. The free or subsidized transport provided to employees for journeys from their
residence to the place of work or such place of work to the place of residence is in lieu
of conveyance/transportation allowance, which is not liable to FBT. Accordingly, the
expenditure incurred by the employer for the purposes of providing free or subsidized
transport for journeys to employees from their residence to the place of work or such
place of work to the place of residence will not be liable to FBT.