Fringe Benefit Tax
This query is : Resolved
19 September 2007
What are the facility on which FBT should be charged & what is the rate of FBT
19 September 2007
Hi Ajay,
Accordingly, the scope of the term 'fringe benefits deemed to have been provided' is defined in sub -section (2) of section 115WB so as to provide that fringe benefits shall be deemed to have been provided by the employer if he has incurred any expense on, or made payment for, the purposes summarized below:
• (A) Entertainment;
• (B) Provision of hospitality of every kind to any person, whether by way of food or beverages or in any other manner excluding food or beverages provided to the employees in the office or factory or non transferable paid vouchers usable only at eating joints or outlets;
• (C) Conference excluding fee for participation by the employees in any conference;
• (D) Sales promotion including publicity but excluding specified expenditure on advertisement;
• (E) Employee welfare excluding any expenditure or payment made to fulfill any statutory obligations or mitigate occupational hazards or provide first aid facilities in the hospital or dispensary run by the employer;
• (F) Conveyance tour and travel (including foreign travel);
• (G) Use of hotel, boarding and lodging facilities;
• (H) Repair, running (including fuel) and maintenance of motorcars and the amount of depreciation thereon;
• (I) Repair, running (including fuel) and maintenance of aircrafts and the amount of depreciation thereon;
• (J) Use of telephone (including mobile phone) other than expenditure on leased telephone lines;
• (K) Maintenance of any accommodation in the nature of guesthouse other than accommodation used for training purposes;
• (L) Festival celebrations;
• (M) Use of health club and similar facilities;
• (N) Use of any other club facilities;
• (O) Gifts; and
• (P) Scholarships.
Tax Rate
FBT shall be payable at the rate of 30% of the value of fringe benefits computed in the manner provided in section 115WC.
Accordingly, the scope of the term 'fringe benefits deemed to have been provided' is defined in sub -section (2) of section 115WB so as to provide that fringe benefits shall be deemed to have been provided by the employer if he has incurred any expense on, or made payment for, the purposes summarized below:
• (A) Entertainment;
• (B) Provision of hospitality of every kind to any person, whether by way of food or beverages or in any other manner excluding food or beverages provided to the employees in the office or factory or non transferable paid vouchers usable only at eating joints or outlets;
• (C) Conference excluding fee for participation by the employees in any conference;
• (D) Sales promotion including publicity but excluding specified expenditure on advertisement;
• (E) Employee welfare excluding any expenditure or payment made to fulfill any statutory obligations or mitigate occupational hazards or provide first aid facilities in the hospital or dispensary run by the employer;
• (F) Conveyance tour and travel (including foreign travel);
• (G) Use of hotel, boarding and lodging facilities;
• (H) Repair, running (including fuel) and maintenance of motorcars and the amount of depreciation thereon;
• (I) Repair, running (including fuel) and maintenance of aircrafts and the amount of depreciation thereon;
• (J) Use of telephone (including mobile phone) other than expenditure on leased telephone lines;
• (K) Maintenance of any accommodation in the nature of guesthouse other than accommodation used for training purposes;
• (L) Festival celebrations;
• (M) Use of health club and similar facilities;
• (N) Use of any other club facilities;
• (O) Gifts; and
• (P) Scholarships.
Tax Rate
FBT shall be payable at the rate of 30% of the value of fringe benefits computed in the manner provided in section 115WC.
12 October 2007
Thanks for your information.
09 November 2007
Also see the latest circular on ESOP regarding this.
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