Fringe Benefit Tax Query ??
This query is : Resolved
18 December 2008
Please refer to "CIRCULAR No. 8/2005, dt 29/8/05 of Fin Act, 2005.
Point No. 78
Reimbursement in respect of car exp on the basis of bills submitted & driver's salary on the basis of declaration :
such reimbursement is effectively exp of employers for the purpose ofconveyance, tour & travel covered in clause (F). SO IT IS A CONVEYANCE EXP.
Point No. 87
Salary paid to driver of a motor car :
is a vehicle running & maint exp.
------------------------------------------
CLARIFICATION Received
___________________________________________
When there is reimbursement of conveyance expenses then it is clear that the vehicle is not owned by the employer. So here is salary paid to driver by the employee.
On the other hand "Salary paid to the driver of a motor car - is a vehicle running & maintt. expenses" means that vehicle is owned by the employer and driver is also his employee.
===========================================
Supplementary question ?
===========================================
In our case, the vehicle is owned by the employer & employee is using it for office purposes.
Employee is using his personal driver for this & claiming reimbursement from the employer for the driver's salary.
Now tell me how should i take it.
Thanks & Regards,
Subhash Jha
Point No. 78
Reimbursement in respect of car exp on the basis of bills submitted & driver's salary on the basis of declaration :
such reimbursement is effectively exp of employers for the purpose ofconveyance, tour & travel covered in clause (F). SO IT IS A CONVEYANCE EXP.
Point No. 87
Salary paid to driver of a motor car :
is a vehicle running & maint exp.
------------------------------------------
CLARIFICATION Received
___________________________________________
When there is reimbursement of conveyance expenses then it is clear that the vehicle is not owned by the employer. So here is salary paid to driver by the employee.
On the other hand "Salary paid to the driver of a motor car - is a vehicle running & maintt. expenses" means that vehicle is owned by the employer and driver is also his employee.
===========================================
Supplementary question ?
===========================================
In our case, the vehicle is owned by the employer & employee is using it for office purposes.
Employee is using his personal driver for this & claiming reimbursement from the employer for the driver's salary.
Now tell me how should i take it.
Thanks & Regards,
Subhash Jha
18 December 2008
It will come under Vehicle running and maintt. expenditure.
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