Ramaswamy (Manager) (29 Points)
05 August 2008FBT is not applicable for proprietor .
The amount spent on conveyance or travel by proprietor doesnot attaract FBT.
If the amount is spent by the employee, should he declare as the benefit to the employee and file FBT OR should the employee include that in his taxable income. The employee cant declare in his income for example he makes a trip to the customer locally by taxi or make a out station visit
Please clarify.
CA Hemant T Dewani
(Chartered Accountant)
(3356 Points)
Replied 05 August 2008
fbt is not applicable to propriator so whether exp are made by prop.or employee fbt is not appicable
GIRISH KUMAR MITTAL
(Chartered Accountant)
(96 Points)
Replied 05 August 2008
FBT is not at all applicable if the employer is a proprietory concern.So you have to show this expense in your books by the nomenclature as Conveyance Exps. and these will not be added in the taxzble income of the employee.
Jasveer Singh Kalsi
(CA)
(83 Points)
Replied 05 August 2008
FBT is not applicable to propriator so exp are made by prop.or employee is irrelevent for FBT.
Murali
(CA final cleared and CS final)
(102 Points)
Replied 05 August 2008
FBT is not applicable to proprietorship firm. Therefore any expenditure incurred for business purpose will not attract FBT. If any conveyance allowance is given to employee it will be chargeable in the employee's hands in excess of Rs.800 pm.
Ramaswamy
(Manager)
(29 Points)
Replied 06 August 2008
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Thanks for the reply . When the reply is posted if one can give the reference from where the point is justified, it can help to identify the differences.When the new concept it really takes time to standardise and so if the reference can be pointed out it can avoid different views. Finally IT will accept what is meant in their laws. Mr.Murali, where did you get the figure of Rs.800/-. Conveyance allowance is given as a fixed amount for covering his conveyance from residence to office etc., Suppose he makes a office visit by auto for which it is reimbursed, will it come under conveyance allowance for the employee. ALSO GIVING BELOW AN INFORMATION , I READ IN E TAXES INDIA.COM. The government said that if the fringe benefit tax (FBT) does not cover employers , mainly, sole proprietorships and self-employed professionals, then the employees will have to pay the Fringe Benefit Tax. “Therefore, in the case of sole proprietors and self employed professionals, who are currently not liable to FBT, any benefit provided by them to their employees would have to be valued as per the rules and taxed as employee’s income,” explained KPMG partner Vikas Vasal. Since FBT is not applicable to an employer who is an individual or a Hindu undivided family (HUF) or any fund or trust or institution eligible for exemption under clause (23C) of section 10 or registered under section 12AA, the provisions were required to be amended to include valuation of perquisite in case of benefits provided by such employers to its employees. |
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CA. Gurdeep Singh Chawla
(C A)
(7080 Points)
Replied 09 August 2008
| Originally posted by :Ramaswamy | ||
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If the employer is pvt. Ltd company then wheather FBT is applicable on the covenyance allowance given to employees & should it be deducated from employees salary at what rate.
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