FBT on Drivers' T A D A EXP

This query is : Resolved

JAVED SHEIKH (Querist)
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28 February 2009 Whether Travelling and Dearness allowances paid on fixed rate per hour but fluctuating on overtime basis, is liable to FBT for employer

(pl revert back ASAP)

K V Subba Rao

K V Subba Rao (Expert)
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28 February 2009 (a) Travelling Allowance and Daily Allowance go together and commonly known as TA & DA

(b) There is no nexus between Travelling Allowance and Dearness Allowance

(c) Overtime forms part of salary; hence it is not subject to FBT

(d) Dearness Allowance liked to cost of inflation index forms part of salary; hence not liable for FBT

(e) Travelling Allowance is liable for FBT

(f) Daily Allowance paid when an employees performs duty outside headquarters, being part of TA & DA, is liable for FBT

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