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FBT on Transport Facility

sanjeev (Manager- Accounts/Tax/Finance) (229 Points)

10 March 2008

Dear All,

My question is that

A company is paying Transport Allowance to all employees and we are claiming exemption of Rs 800 per month in their individual return.

Now company is also providing Transport Facilities to its employees.

My question is whether FBT willl be charged on this expense or not???????

Usually no FBT is charged on this kind of expense.

But due to the payment of Transport Allowance situation may Change as far as my own opinion is concerned.

Please guide me as soon as possible

Sanjeev Gandhi(CA)

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4 Replies

amit rustagi (ACA) (51 Points)
Replied 10 March 2008

Transport allowance can not be claim in this case and individual employee has to pay tax on the same. regarding, FBT on the cab facilities provided by the employer to their employee will fall under the preview of FBT. regards,

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CA SASHIKANT PATI (Job) (159 Points)
Replied 10 March 2008

If the Comp provide trpt facility , then Employee shall not claim TRpt Allowance U/S 10 (Rs. 800 PM).

(Guest)

Hi! As the employees are not utilising the conveyance allowance for the purpose of commuting from residence to place of work, the entire allowance woudl be taxable in the hands of individial employees. As regards the FBT on free transportation provided to staff by the employer, as per FAQ No. 104 of Circular No.8/2005 dt. 29-08-2005, the said expenditure shall not form part of FBT.