FBT & Presumptive rate of tax as per the IT

Others 1447 views 3 replies

Manyamicwa

25 Points Posted on 10 May 2007

AS per the IT act, small contractors i.e turnover bellow 40 Lakhs, can pay the tax on profit of 8% on turnover. Moreover, if he choose that option, he need not be mantain any books of accounts.

If that contractor is partner ship firm, less than 40 lakhs T.O, he is [b]not maintaining any books as he chooses the presumptive tax option, how can he arrive the fringe benfit to employees? on those situations, whether he should be pay the FBT / Not?

Replies (3)

Jas

28 Points Posted on 10 May 2007

hi dear

wel fbt wll be payable by the firm irrespective of the fact whether the firm is maintaining the books of accounts or not.

this is my opinion n other opinion are also welcomed

Chintanshah

CA Practice

122 Points Posted on 10 May 2007

115W. In this Chapter, unless the context otherwise requires,

(a) employer means,

(i) a company;

(ii) a firm;

24[(iii) an association of persons or a body of individuals, whether incorporated or not;]

(iv) a local authority; and

(v) every artificial juridical person, not falling within any of the preceding sub-clauses:

25[Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter;]

Chintanshah

CA Practice

122 Points Posted on 10 May 2007

he has to maintain his books of accounts for FBT purpose
And FBT and Income tax is totaly a different taxes
whether or not his accounts are maintained ,he has to pay FBT.