FBT querry 1
This query is : Resolved
27 March 2008
Sir,
I am slightly confused about conveyance expenses which is covered under FBT.
My question is that how the conveyance allowance for the performance of office duty( exempt under 10 (14)), is differ from conveyance covered under FBT.
Please provide the coverage area of such head in FBT.
I am slightly confused about conveyance expenses which is covered under FBT.
My question is that how the conveyance allowance for the performance of office duty( exempt under 10 (14)), is differ from conveyance covered under FBT.
Please provide the coverage area of such head in FBT.
27 March 2008
Employee specific conveyance is not liable to FBT. Whereas, If it is not identifiable with specific employee, it is taxable
28 March 2008
you mean to say if conveyance allowance is given to all the employees say monthly pass of railways (for the performance of office duty & pursuing frm office to home & vice versa , it will be exempted under 10(14). So if employer provides any comon trasportation facility like bus etc. from a common station to work place will be covered by FBT.
One more thing although office purpose conveyance is exempted , since it is considered in salary calculation , will fall out of purview of FBT . Am i right.
One more thing although office purpose conveyance is exempted , since it is considered in salary calculation , will fall out of purview of FBT . Am i right.
28 March 2008
please clear it again
Reetika Goel
(Expert)
28 March 2008
Hello Ravi,
First of all u need to understand the difference b/w perquisites and allowances.
If money is paid by the employer to incur sm expenditure or avail sm facility its called allowance.
However, if facility is directly provided by the employer then its called perquisite.
Since, in ur query, u have asked abt treatment of FBT. If allowance is paid by the employer to commute from home to office and vice versa, its called Transport allowance and is exempt to the extent of Rs. 800pm. and FBT provisions are not attracted by this allowance.
however, if allowance is paid to commute for sm office work, it is called conveyance allowance still FBT provisions are not attracted.
But if employer reimburses employee for conveyance, then FBT provisions will apply.
And if employer provides cab facility then also FBT provisions will apply.
First of all u need to understand the difference b/w perquisites and allowances.
If money is paid by the employer to incur sm expenditure or avail sm facility its called allowance.
However, if facility is directly provided by the employer then its called perquisite.
Since, in ur query, u have asked abt treatment of FBT. If allowance is paid by the employer to commute from home to office and vice versa, its called Transport allowance and is exempt to the extent of Rs. 800pm. and FBT provisions are not attracted by this allowance.
however, if allowance is paid to commute for sm office work, it is called conveyance allowance still FBT provisions are not attracted.
But if employer reimburses employee for conveyance, then FBT provisions will apply.
And if employer provides cab facility then also FBT provisions will apply.
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