i want to know what is the basic processor & formalities of FBT like.. Form heads on which tax is applicable Tax rates Date of filing Return ie annually semi annually quarterly or monthly
23 October 2007
As per the Finance Bill, fringe benefits shall be deemed to have been provided if the employer has incurred any expense or made any payment for the purposes of:
(a) entertainment; (b) festival celebrations; (c) gifts; (d) use of club facilities; (e) provision of hospitality of every kind to any person whether by way of food and beverage or in any other manner, excluding food or beverages provided to the employees in the office or factory; (f) maintenance of guest house; (g) conference; (h) employee welfare; (i) use of health club, sports and similar facilities; (j) sales promotion, including publicity; (k) conveyance, tour and travel, including foreign travel expenses; (l) hotel boarding and lodging; (m) repair, running and maintenance of motor cars; (n) repair, running and maintenance of aircraft; (o) consumption of fuel other than industrial fuel; (p) use of telephone; (q) scholarship to the children of the employees.
The value of fringe benefits shall be the aggregate cost incurred. That is, the total expense deducted will be considered for purposes of levying fringe benefit tax. From this, a certain percentage will be deducted. The difference therein will be taxed at the rate of 30%.
However, the fringe benefit tax rate varies from 10 per cent to 50 per cent depending upon the expense incurred: For example, for the use of telephones 10 per cent fringe benefit tax will be charged, while entertainment expenses, festival expenses, gifts, use of club facilities, etc will be taxed at the rate of 50 per cent.
Payment of FBT Period Due date for payment of FBT Quarter to end on 30 June 30 September 31 December 15th day of the month following such quarter
Quarter to end on 31 March 15th day of March of the said financial year Any excess advance tax paid for the preceding quarter can be adjusted against the advance tax for the subsequent quarter(s). Payment of FBT is not allowable as deduction from the income [Section 40 (a) (ic)]. Filing of return of FB Category Filing Due Date A company, a person (other than a company) whose accounts are required to be audited under this Act or under any other act for the time being in force 31st day of October of the assessment year In case of any other employer 31st day of July of the assessment year
CAclubindia
