FBT

Dear Members


What will be the rate of FBT in case of firm & companies having taxable income of Rs. 1 Crore or less for the A.Y. 2008-09??


Will it be 30.99% i.e. 30% + (2%EC+1% SHEC) or 33.99% i.e.30%+10%+(2%EC+1% SHEC).


Regards


Komal Mantri


 

Replies (9)
33.99%...
Thanks for your answer..
Please explain your answer i.e Why it shld be 33.99% and not 30.99
FBT rate in case of Employer being AOP/BOI and FBT payable does not exceed Rs. 10Lakhs the effective rate would be 30.9% whereas in case of Firm, Companies and artificial juridical person FBT rate irrespective of amount of FBT payable it would be 33.99%
it will be 33.99%
it will be 33.99%, suppose expenditure is 2000 then taxable amount for FBT(depend upon tax rate) is 100(taken as 5%), then FBT would be, 100 *30% = 30 +surcharge 10% = 3 ------------- 33 + Education cess 3% = 00.99 (a.y. 2008-09) -------------- 33.99 ---------------
It is Basic TAx, Surcharge and Education Cess
HI
Rate of FBT is 33.99 % as surcharge is not leviable on companies and firms having total income upto Rs 1 crore only in respect of corporate tax and not FBT .Thus rate of FBT is 33.99% for them.
There is no relaxation of Surcharge & Cess unlike TDS. So, applicable rate is 33.99%
30% (+) 10% (+) 3% =33.99%

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