FBT New............

This query is : Resolved

Prakash (Querist)
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21 November 2008 Dear sir,

We are giving daily allowance Rs.100 per day as per attendence wise to our sales executive for visiting to distributor,fooding, conveyance & others.
We have not mention this daily allowance their appointment letter. We pay this daily allowance through separate voucher. We exclude this daily allowance from any statutory deduction and not showing this amount in pay slip. So, is it required to pay FBT on this?

Ravikumar.G

Ravikumar.G (Expert)
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21 November 2008 If there is any fixed allowances to employees without any reimbursements, not including salary and not the expenses actually incurred by the employee it will be treated as Fringe benefits. Taxable value u/s 115WC is actual value. (Ie 100%) (not 20% or 5%).