FBT ( 115 WB (1) (a)

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Ravi Jagetiya(CA Final) (Querist)
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26 March 2008 Sir having reference to the section 115 WB (1)subclause (A)which provides FBT on benifit reimbursed or otherwise provided by employer,
Now my question is that whether two wheeler expenses like petrol & repairs will be covered under this clause or tho wheeler is excluded. Since there are deemed FBT only for aircraft & motor car.

please gide the valuation of expenses incured on two wheeler also.

please give a coverage area of this clause.

thanks in advance.

MANAS ROUT

MANAS ROUT (Expert)
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26 March 2008 if the conveyance is specified to the particular employee then it will be added in his salary as conveyanc allowance.
otherwise if it is common for all employee and the company reimbursing it for official duties for employee thee the comapnay has to pay Fbt on it.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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26 March 2008 IF EMPLOYEE IS PROVIDED CONVEYANCE ALLOWANCE THAN IT WILL FORM PART OF HIS SALARY AND IF IT IS USED AS CONVEYANCE FOR OFFICIAL PURPOSES AND NOT GIVEN AS ALLOWANCE THAN IT WILL FORM PART OF FBT

Ravi Jagetiya(CA Final)

Ravi Jagetiya(CA Final) (Querist)
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26 March 2008 Please give solution of the given problem.

In my company i am giving conveyance allowanceto 5 employees say 5000 total.
since it is being spent for the purpose of office purpose, it will be exempted under section 10(14).
So what will be the consequences in this case.

One more thing whether it's compulsory that benefit should be given to class of employee or group of employee.

thanks in advance

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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26 March 2008 NO IT IS NOT COMPULSORY THAN BENFIT HAS BEEN PASSED TO EMPLOYEE .IN YOUR CASE SUCH CONVEYANCE WILL FORM PART OF FBT