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Very Urgent : Treatment of Driver salary & Fuel for FBT??

This query is : Resolved 

10 December 2008 Sir,

We are a software company & enjoying FBT @ 5 % on Domestic travels. I have 3 questions :

1. Whether driver's salary for company car is local conveyance or vehicle running maintenance ??

2.Whether fuel charges for company car is local conveyance or vehicle running maintenance ??

3. Depreciation on car is calculated in March so whether it should be taken into account while calculating FBT on 1/2/3 instalment ??

Please reply urgently.

Thanks & Regards,

Subhash

11 December 2008
1. In my opinion, both driver salary and fuel charges are taxable Fringe Benefits under vehicle running and maintenance.

2. Depreciation on Car should be taken into account while remitting Advance FBT


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