02 April 2009
Hello Sir/Madam Clear me that when a people hire a vehicle for travelling outside the city/state or use his own vehicle for visit outside the city/state then the Fuel expenses come under which head whether it come under travelling and pay FBT @5% or it should come under vehicle running & Maintainace and Pay FBT@20%.
02 April 2009
(1) I suppose your reference to vehicle in query is to motor car
(2) Words "(including fuel)" are used in definition of Sec 115WB(2)(H) for Motor Car Expenses; so FBT is payable on 20 % of expenditure
(3) There is no scope to cover it under Travelling since definition for Motor Car Expensess explicitly included words (including fuel)
So according to Govt., if an Employee performs journey in a motor car to a place even outside his work place for official work, he spends 80 % of time for office work and 20% of time for personal work !
CAclubindia
