fringe Benefit Tax

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bm (Querist)
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17 September 2008 pls help me

is it surcharge is compulsory for fbt even though the company gross recipt not more than 1 crore

thanks
bm

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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17 September 2008 Yes, surcharge on FBT is payable irrespective of the figure of Total Income.

bm (Querist)
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17 September 2008 thanks very much sir

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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17 September 2008 Surcharge is Applicable if the value of "Fringe Benefits Exceed 1 Crore Else Tax Rate Is 30.90%.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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17 September 2008 No, Mr. Nitin,

Pl read the Finance Act, 2007 carefully; Surcharge is payable on FBT amount payable by a person other than AOP or BOI irrespective of the figure of Total Income or the Fringe Benefit. Relevant Extracts from the Finance Act, 2007 are reproduced herein below for your reference:

Provided also that in respect of any fringe benefits chargeable to tax under section 115WA of the Income-tax Act, advance tax computed under the first proviso shall be increased by a surcharge for purposes of the Union, calculated,

(a) in the case of every association of persons and body of individuals, whether incorporated or not, at the rate of ten per cent of advance tax where the fringe benefits exceed ten lakh rupees;

(b) in the case of every firm, artificial juridical person referred to in sub-clause (v) of clause (a) of section 115W of the Income-tax Act, and domestic company, at the rate of ten per cent of such advance tax;

(c) in the case of every company, other than a domestic company, at the rate of two and one-half per cent of such advance tax.