26 November 2007
Fringe Benefit Tax is a tax imposed by the Government on the individual fringe benefits provided by employer to the employees. If some benefit is collectively provided by employer viz., coffee, tea ,food provided to employees. then they are specifically exempted ( vide list of fringe benefits in the reckoner).
The benefit is taxed at certain percentages, 5 % or 20 % as the case may be and the employer, according to his tax status( firm or company ), has to pay fringe benefit tax on that.
eg., Telephone expenses incurred by the employer. Act says atleast 20 % of the telephone expenses would be of personal nature of the employees and treat it as fringe benefit.Likeweise, travelling expenses , 5 % and so on.
CAclubindia
