FBT on DA..??

This query is : Resolved

chandan (Querist)
Follow

21 December 2007 Hi,

If an employee travels for official purpose and if he receives Daily Allowance for the no of days he travels and the same is not taxable in his salary, whether such DA is liable for FBT under Travel @ 5%..??

CA. Vineet Grover

CA. Vineet Grover (Expert)
Follow

21 December 2007 Hi Chandan,

It is very correct that if the DA does not form part of the salary the same shall be suject to FBT u/s 115WB(2)(Q).

Rgds/
Vineet

chandan

chandan (Querist)
Follow

28 December 2007 will it be liable under Travelling - 5%
or

Employee welfare - 20% since its a compensation to the employee..

Upgrade to CAclubindia Pro. Subscribe Now!