9911796707
TMI Blog2008 (10) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... at it has liaison offices in New Delhi, Mumbai and Chennai, but it does not carry on any business activities through those offices. No income accrues or arises to the applicant in India. It has employees working in these liaison offices, and the expenses relating to the Indian offices are reimbursed from Singapore office. The applicant has also enclosed copies of approval of the Reserve Bank of India for setting up the liaison offices, audited balance sheet, statement of income and expenditure, etc.. In the light of these facts, the applicant seeks advance ruling of this Authority on the following question:- "Whether FBT is applicable on Singapore Tourism Board having liaison office in New Delhi, Mumbai, Chennai." 3. The Direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Departmental representative submits that the ruling of this Authority in the case above applies to the present case on all fours. 6. We observe that FBT was introduced in the Act through the Finance Act, 2005 which incorporated Chapter XII-H in the Act w.e.f. 1.4.2006. It contains provisions relating to definitions, charge of fringe benefits tax, value of fringe benefits, filing of return, assessment, best judgement assessment, advance tax, etc., relating to FBT. An employer who pays fringe benefits to his employees is required to furnish a return of fringe benefits in the prescribed form. He is also required to deposit self assessed tax in advance. Assessing officer is required to make assessment of frin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with the provisions of this Act, such employer shall still be liable to pay FBT. 7. The other relevant provision is section 115WB which gives the meaning of 'fringe benefits.' It reads as follows : "Fringe benefits. 115WB. (1) For the purposes of this Chapter, "fringe benefits" means any consideration for employment provided by way of (a) any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees); (b) any free or concessional ticket provided by the employer for private journeys of his employees or their family members; (c) any contribution by the emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid electronic meal card usable only at eating joints or outlets and which fulfils such other conditions as may be prescribed. (C) conference (other than fee for participation by the employees in any conference). Explanation. For the purposes of this clause, any expenditure on conveyance, tour and travel (including foreign travel), on hotel, or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purposes of conference; (D) sales promotion including publicity: shall not be considered as expenditure on sales promotion including publicity; (E) employees' welfare. (F) conveyance ; (G) use of hotel, boarding and lodging facilities; (H) repair, running ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e employer, whether for the purpose of deriving gain or otherwise, shall be deemed as provision of fringe benefits to the employees. These include entertainment, hospitality, conference, sales promotion, employees' welfare, conveyance, maintenance of guest house, festival celebrations, gifts, tour and travel, etc. As may be seen, but for the deeming fiction, many of the above specified items would not normally have come under the purview of fringe benefits, as these are not directly provided to the employees. But sub-section (2) declares them to be fringe benefits. 8. As we have already seen from the scheme of Chapter XII-H and the provisions section 115WA, FBT is apart from and in addition to income-tax. It has separate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to the income-tax charged under this Act, sub-section(2) thereof clarifies that even when no income-tax is payable by an employer on his total income computed in accordance with the provisions of this Act, the tax on fringe benefits shall be payable by such employer. When Section 115WA of the Act says that FBT is in addition to income-tax and even when no income-tax is payable by an employer on his total income computed in accordance with the provisions of this Act, it will be futile to contend that if there is no total income which can be computed in accordance with the provisions of this Act, no FBT would be payable by the employer. Such an interpretation would be contrary not only to the intention of Parli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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