what is a rate of Fbt? (Income Tax)

This query is : Resolved

Ashwani Sharma

( Author )
01 October 2008

Plz clear a point of FBT as well as tell me FBT rates and how its treat

CMA Jitendra Singh

( Expert )
01 October 2008

FBT is fringe benefit tax

Basically, the objective is to recognize the expenses which are related with over employees and average 6.5% of those expenses are FB tax amount which every employer is suppose to pay

Please read the basic books on IT to understand the concept in more detail.In case of any specific query ,write again

PIYUSH JAIN

( Expert )
01 October 2008

FBT rate is 30%+surcharge+Cess=33.66%
First we calculate value of that benefit, which can be 100%, 50% ,20% as per IT Act.
Then calculate tax.

Venkat Rao Marella

( Expert )
01 October 2008

FBT is leviable on various expenses which are subject to FBT.
1. Identify if the expenditure is subject to FBT.
2. Calculate the value of expenditure liable to FBT. this can be 100%,50% or 20%.
3. Apply 33.99% on the total value of expenses liable to FBT.

Also, pelase read various presentations on FBT available in this site.