FBT on Cab rentals
This query is : Resolved
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?
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?
07 October 2008
Yes, it will attract FBT
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.
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.
07 October 2008
It will not be liable to FBT.
08 October 2008
No it will not attract FBT
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