Whether FBT is chargeable from an entity even if its income is exempt under a Double Taxation Avoidance Agreement (DTAA)?
Exemption, if any, under a DTAA is only in respect of income of the entity. However, FBT is a liability of an entity qua employer. Therefore, FBT is payable by a non-resident employer if it fulfills the various conditions relating to its chargeability laid down in Chapter XII-H of the Income tax Act.
