FBT

All benefit cover FBT

if fixed telephone allowance is provided to employees, no FBT would be payable thereon because the same will be taxable in the hands of employees as profits in liew of salary under section 17 (3)

Further, it is not provided in section 115 WB that use of telephone only by employees would be covered. Therefore, fringe benefit tax will be attracted even in a case where there is no use of telephone by the employees and it is used hundred per cent for official purpose.

if fixed telephone allowance is provided to employees, no FBT would be payable thereon because the same will be taxable in the hands of employees as profits in liew of salary under section 17 (3)

Further, it is not provided in section 115 WB that use of telephone only by employees would be covered. Therefore, fringe benefit tax will be attracted even in a case where there is no use of telephone by the employees and it is used hundred per cent for official purpose.

Telephone Charges are covered by "Deemed Fringe Benefits".

This is because, where any benefit is provided by the employer to his employees and such amount, cannot with certainity, be segregated between personal and official element will be covered as "Deemed Fringe Benefits".

And so, any amount which you show under the head "Telephone Charges" in your Financial Statements will be liable to FBT, unless such amount doesnot contain any sum given as fixed telephone allowance to the employee, which forms part of his salary component.

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