Whether foreign companies sending their employees on our to India required to pay FBT on their travel cost particularly when they are not subject to income tax in India?
If a foreign company is not an employer in India (i.e. it does not have any employees based in India), it is not liable to FBT in India. However, if a foreign company is an employer in India (i.e. it has employees based in India), it will be liable to FBT in respect of the fringe benefits provided or deemed to have been provided within the meaning of section 115WB of the Income tax Act.
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