FBT is on expenses incurred on behalf of employees. this is what I have understood. If motor car is used by the proprietor for his bussiness and not used by the employee,(especially when there is no employee at all) will there be any FBT. Hope I am putting my ? clear.
quote:(from IT act)
1)any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees);
2)The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has, in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains) incurred any expense on,
Question: (1) should there be a necessity to incur exp on employees "or"
(2) with or without employees, will the expenses classified shall be deemed to liable for FBT.
Hope I am putting my ? clear.
CAclubindia
