FRINGE BENIFIT TAX

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MANISH

MANISH (Querist)

19 February 2008 if the income is exempt from tax will FBT be applicable?

R.V.RAO

R.V.RAO (Expert)

19 February 2008 A PERSON IS LIABLE FOR FRINGE BENEFIT TAX EVEN IF HE DOES NOT HAVE ANY INCOME CHARGEABLE TO INCOME TAX.
FOR EXAMPLE A COMPANY HAVING AGR. INCOME EXEMPT UNDER SEC 10 IS STILL LIABLE FOR PAYMENT OF FBT IF OTHER CONDITIONS ARE SATISFIED.
FBT IS NOT PAYABLE BY A TRUST,FUND OR INSTITUTION OR A COMPANY REGD. UNDER SEC 25 OF COMPANY'S ACT IF ITS INCOME IS EXEMPT UNDER SEC 10(23C) OR IS REGISTERED UNDER SEC 12AA OF INCOME TAX ACT.
R.V.RAO

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

20 February 2008 EVERY PERSON SHALL BE LIABLE FOR FBT EXCEPT CO'S REGD UNDER SEC 25 OF CO'S ACT ,TRUST,INSTITUTION .IF THE COMPANIES PROFIT IS EXEMPT U/S 10,10A,10B EVEN THAN THE COMPANY IS LIABLE FOR FBT

Gaurav Gupta

Gaurav Gupta (Expert)

20 February 2008 Under Section 115 FBT is applicable if:-
1.There is Employer-employee relationship.
2.Any expense incureed is covered under specified 18 items described under the section.

There is no criteria of Income or Loss in the Business. even if there is loss FBT is aplliacble.

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