Fringe Benefit Tax

Conveyance forms part of FBT u/s 115WB @ 20%.

If conveyance allowance given to employee is included in his/her salary, than it doesn't forms part of FBT. If not included than it will be taxable under FBT.

dear friend

it will atract fbt @ 20% if it will not form port of salary.

Thank you Ms. Garima & Mr. Suresh,

Now, if you go through the suggested answers uploaded for Nov'07 exams, you will find that Conveyance Allowance (fixed) has been held taxable as Fringe Benefit. Though, a rough reading of the section clearly provides that Fixed conveyance allowance shall not be included as taxable Fringe Benefit.

Kindly advise.

Regards,

Dear Mr Anand,

As per my understanding IF Conveyance allow.paid as part of salary and included in salary of employee than definately it not cover under FBT bcoz there should not be double taxation that employer also pay FBT on it and employee also pay tax on it. But if employer show as expenses than it covers under fbt. So it should be taxable either in hands of emplyee by way of I.Tax or to Employer by way of FBT.there should not be double taxation.

Whether Toll & Parking charges is liable for Fringe Benefit Tax if those expenses are bear by the company & the car is used for office purpose?

Pls advise how can determine taxable part of Conveyance for FBT.  Total conveyance is taxable for FBT

Pls advise how can determine taxable part of Conveyance for FBT.  Total conveyance is taxable for FBT