FBT on Presumptive Income

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CA Adarsh Nair

Chartered Accountant

29 Points Posted on 15 March 2008

Whether FBT provisions is applicable in case of a partnership firm who is filing returns by the deemed provisons of IT Act ie u/s 44AF?

Since he neednot to maintain the books of accounts, If FBT provision is applicable to such assessee how the FBT can be determined?

Post ur valuable reply?

with regards

Adarsh B Nair

Replies (2)

Gupta B Gullapudi

PRACTICING CA

40 Points Posted on 15 March 2008

Yes fringe benefit tax will be payable by the firm even if it is being assessed on presumptive basis under section 44 AF . There is no provision in chapter XII-H to exclude such employer from fringe benefit tax purview who is going to be assessed on presumptive basis. It is true that it will cause genuine hardship to the assessee because it would be very difficult to calculate fringe benefit tax in the absence of books . But, for the purpose of computation of fringe benefit need to maintain records. Further, as per clause (a) of Section 115 W employer means (ii) Firm.

anyone differ with my view pl........

Guest

Posted on 10 December 2008

Originally posted by :Gupta B Gullapudi
"	Yes fringe benefit tax will be payable by the firm even if it is being assessed on presumptive basis under section 44 AF . There is no provision in chapter XII-H to exclude such employer from fringe benefit tax purview who is going to be assessed on presumptive basis. It is true that it will cause genuine hardship to the assessee because it would be very difficult to calculate fringe benefit tax in the absence of books . But, for the purpose of computation of fringe benefit need to maintain records. Further, as per clause (a) of Section 115 W employer means (ii) Firm. anyone differ with my view pl........	"