07 November 2007
One of Firm, its Turnover was Rs.14 lacs ant it was a manufacturing industry (small)for the year 2006-07, which was applicable for FBT or not?
07 November 2007
FBT is payable only if the EMPLOYER has one or more EMPLOYEES based in INDIA.FBT payable by entity does not depends upon turnover of the business.However industry to which business belongs affects amount of FBT as some exemptions in the form of lower rate are given to certain sectors(eg Hotels,airlines)for certain expenses incurred by them .So even if a company/Firm has a turnover of RS 1 Crore but does not have any employee based in India it is no liable to FBT.
08 November 2007
Thanks Mr. Ravi Kumar for your inputs and please do continue to do so as it is all this that will help the authors and even experts. CACLUB is the platform for interaction of professionals. Happy Diwali.
11 November 2007
Mr. Ravikumar had righly said that even loss making units has to pay FBT. I just want to add that individuals i.e. Proprietorship Firms are not required to pay FBT. So assuming the word Firm used is Partnership Firm the FBT has to be paid.
CAclubindia
