The expense on conference is within purview of fringe benefit of tax u/s 115WB(2)(c) of the I T Act. Therefore , let us refer the section :
“(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;”
As can bee seen , participation fee paid for employees is out of purview of FBT. The circular 8/2005 vide answer no 55 clarified as follows:
Whether expenditure in the nature of fee for participation by the employees in any conference is liable to FBT?
“55. In terms of the provisions of clause (C) of sub-section (2) of section 115WB, expenditure in the nature of fee for participation by the employees in any conference is not liable to FBT. However, if the participation fee includes any expenditure of the nature referred to in clauses (A), (B) and (D) to (P) of sub-section (2) of section 115WB, such expenditure will be liable to FBT.”
Therefore , if the director is not an employee , expense on him for registration or admission fee is not exempt from FBT otherwise it is. Further, plain reading of provision shows that all other expense related to conference of employees -like traveling,conveyance ,boarding or lodgong are taxable under FBT.
