FBT related issue

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This query is : Resolved

Deepak Narsaria (Querist)

08 January 2009 Whether FBT is applicable when there is no employees in the company but they have taken employees on deputation basis

Jitender

Jitender (Expert)

08 January 2009 in case there is no employees on roll then no fbt is payable.

K V Subba Rao

K V Subba Rao (Expert)

08 January 2009 I agree with Mr Jitender after reading Article in https://www.icai.org/resource_file/9799Girish.pdf

K V Subba Rao

K V Subba Rao (Expert)

08 January 2009

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

08 January 2009 Circular no 8/2005 says there should necessarily be an employer employee relationship to levy FBT. If the issue raised is viewed in that angle Mr.Jitender's answer is correct. But the term employee has not been defined anywhere in the Income Tax Act,1961. Consequently,it means any employee-full time or part time, regular or casual,employee doing manual work or otherwise. Ref-Taxmann's Taxation of fringe Benefits-4th edition -page 28. In view of this, according to me, the issue is debatable.

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