The Hon'ble Supreme Court in recent decision in case of R & B Falcon Pty Ltd (169 Taxman 515) pronounced on May 6, 2008 observed: "The intention of Parliament was to tax the employer who, on the one hand, deducts the expenditure for the benefit of the employees including entertainment, etc., and on the other when the employees getting the perks are to be taxed, those who get direct or indirect benefits from the expenditures incurred by the employer, no tax is leviable."
Section 115WB dealing with fringe benefits contains three sub-sections: sub-section (1) defines fringe benefits, sub-section (2) gives an expanded meaning to the various types of benefits provided to employees, and sub-section (3) exempts certain benefits from levy of FBT.
The issue for consideration is whether FBT is payable on transport facility provided to the employees from their residence to place of work and back. Benefits of
