FBT
This query is : Resolved
02 February 2009
My client is running business in a partnership firm. The firm has 4 partners and does not have any Staffs and Workers. Is the firm liable to pay FBT even in the absence of Staffs and Workers of the firm.
VINAYAK D PRABHU
(Expert)
02 February 2009
Hi,
The answer for your query is:
The Central Board of Direct Taxes has issued a list of frequently asked questions with answers on Fringe Benefit Tax, after the presentation of the Finance Bill, 2005 and also after its enactment.
As per Qn.1, What are the prerequisites for the levy of FBT?
Ans)FBT is payable by a person if he satisfies the following conditions:-
(i) He is an employer;
(ii) He has employees based in India;
As per Qn:3, Whether FBT is payable by an entity having no employee?
Ans) An entity, which does not have any employee on its rolls, will not be liable to FBT.
Therefore, in your case, since there are no employess, no FBT will come.
The answer for your query is:
The Central Board of Direct Taxes has issued a list of frequently asked questions with answers on Fringe Benefit Tax, after the presentation of the Finance Bill, 2005 and also after its enactment.
As per Qn.1, What are the prerequisites for the levy of FBT?
Ans)FBT is payable by a person if he satisfies the following conditions:-
(i) He is an employer;
(ii) He has employees based in India;
As per Qn:3, Whether FBT is payable by an entity having no employee?
Ans) An entity, which does not have any employee on its rolls, will not be liable to FBT.
Therefore, in your case, since there are no employess, no FBT will come.
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