07 February 2009
Where there is a recreuitment process and the persons who comes for interview the expense is reimbursed to come and back to all the perons who came for interview. Whether FBT will be leviable on such through and fro expenses to the intereviewer
07 February 2009
but there are some still deeming provisions for the employer and employee relationship which is for tours and travels... this may be attacted by this or not.........
24 July 2024
Fringe Benefit Tax (FBT) was abolished in India from 1st April 2009. Therefore, any discussion about FBT now relates to historical contexts and is not applicable for current tax compliance.
However, for understanding purposes, I'll address your query based on the historical context of FBT.
Under the previous FBT regime, expenses related to recruitment, such as reimbursing candidates for travel to attend interviews, were generally considered under the category of "Tours and Travels" for FBT purposes. Here are some considerations:
1. **FBT on Recruitment Expenses:** - Expenses incurred for reimbursing candidates' travel to and from interviews could potentially fall under the ambit of FBT, specifically under the category of "Tours and Travels." - The employer was liable to pay FBT on such expenses if they were provided as a fringe benefit to employees or prospective employees.
2. **Deeming Provisions:** - FBT laws included deeming provisions that deemed certain benefits provided by employers to employees or prospective employees as taxable fringe benefits. This included benefits related to tours, travels, and other similar expenses.
3. **Assessment under FBT Regime:** - Under the FBT regime, assessments were made based on the nature of the expense and whether it constituted a fringe benefit provided by the employer. - The employer was responsible for computing and paying FBT on such expenses if they fell within the scope of the FBT provisions.
In conclusion, under the historical FBT regime, expenses related to reimbursing candidates for travel to attend interviews could potentially attract FBT if they were considered as a fringe benefit provided by the employer. However, since FBT has been abolished, these considerations are now only relevant for understanding past tax liabilities and are not applicable for current tax assessments.
For current tax implications and compliance related to similar expenses, it's advisable to consult with a tax professional who can provide guidance based on the current provisions of the Income Tax Act and other applicable laws.
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