FBT ON PETROL EXPS. REIMBURSMENT

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arti jindal (Querist)
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01 December 2007 WHETHER FBT IS APPLICABLE ON REIMBURSMENT OF PETORL EXPS. TO EMPLOYEES?

AND SPECIFY WHETHER ANSWER WILL DEPEND UPON PETROL USED FOR CAR OR SCOOTER/BIKES

arti jindal

arti jindal (Querist)
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01 December 2007 please reply soon

CA Prasanna Krishnan V

CA Prasanna Krishnan V (Expert)
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02 December 2007 Dear Sir/Madam

Whether reimbursement of fuel cost is in relation to Car or Bike does not change the position. As long as it is paid to employee it is FBTable (@ 6.732% effectively (20% on 33.66%).

If the same is accounted under Salary payments, you know very well, employee bears normal IT thereon and no FBT liability arises.

honey

honey (Expert)
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03 December 2007 Only petrol for car is covered under FBT. No clear guidance on petrol for scooter or bike. As per recent notification on valuation of perquisites, residuary reimbursement such as petrol for bike and scooters, which are not covered under FBT would be taxable in the hands of employee as salary. Valuation at "arms length price".

arti jindal

arti jindal (Querist)
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03 December 2007 can any one provide me this notification