20 April 2009
As per Section 115WB(2)(O), any expenditure on gift in cash or kind by employer is liable to Fringe Benefit Tax to be paid by the employer.
For instance, expenditure debited to P&L A/c by a company under the head "Gift" Rs. 1,00,000/-, value as per section 115WC,i.e., 0.5 comes to Rs. 50,000/- FBT @ 30% comes to Rs. 15,000 Add : Surcharge + Education Cess + Secondary Education Cess to be paid by the employer.
CAclubindia
