Whether expenditure incurred on transportation facility provided to the children of employees is liable to FBT?
The expenditure incurred for the purpose of providing transport facility to the children of employees is in the nature of expenditure on employees’ welfare within the meaning of clause (E) of sub-section (2) of section 115WB. Accordingly, such expenditure is liable to FBT. 78. Whether the reimbursement in respect of car expenses on the basis of bills submitted and driver’s salary on the basis of a declaration provided, booked as ‘salary’, though treated as non-taxable reimbursement, attract FBT? The reimbursement in respect of car expenses on the basis of bills submitted and driver’s salary on the basis of declaration provided fall outside the scope of ‘salary’ within the meaning of clause (1) of section 17 of the Income-tax Act. Therefore, any expenditure towards such reimbursement is effectively expenditure incurred by the employer for the purposes of conveyance, tour and travel. Since the expenditure for such reimbursement is for the purposes referred to in clause (F) of sub-section
