Income Tax is chargeable for all the amounts paid as indirect benefits the employer provides to the employees. Fringe benefits are invisible in the case of the employees. Hence, the tax is levied and collected not from the employees who enjoy fringe benefits but from the employer only who transfers benefits to the employee. It means, the tax is levied and collected at the hands of the employer on the quantified benefits in terms of money i.e., on the amount spent by the employer for the employee’s benefit. The benefit which the employer as by law required to spend such amount is not a fringe benefit and is not taxable. It is only such benefits which the employer confers on the employees for purposes of more efficient management are liable to be computed for purpose of fringe benefits tax. For e.g., the amount spent by the employer for purposes of transport to and fro from the office is taxable as a fringe benefit. While, the amount spent on running a canteen as a statutory obligation by the employer is not a fringe benefit and is not taxable under Fringe Benefit Tax.