Fringe Benefit Tax

Hi, Charging Section(115WA) of FBT reads as follows; 'In addition to the income tax charged under this act, there shall be of April 2006, additional income tax(in this act referred to as fringe benefit tax) in respect of the fringe benefits provided or deemed to have been provided by an EMPLOYER TO HIS EMPLOYEES during the previous year at the rate of 30% on the value of such fringe benefits. Thus its clear that where there is no employer employee relationship, these expenses are out of the purview of FBT. Regards, Sonia

Thanks for the same... I hope your answer will remain same even though we incure all other expenses like staff welfare, conveyance, telephone,travel...... but we will not have Zero FBT liabliity just because there is no employer employee relation ship...kindly confirm.. do we need to follow any procedure for the same....

The expense does not qualify for FBT unless there is an employer employee relationship irrespective of the nature of the expense. The provision for filing returns ( 115 WD) will also not be applicable in such a case.

Thanks if you get any such case pl pass on to me

It is clear that for FBT to become liable employer - employee relationship has to exist. In the absence of such a relationship, the firm will not be liable to FBT.

what is the rate of Fbt on staff welfare

 

20%

Thanks,

Regards,

Vamshi

 

LIST OF EXPS APPLICABLE FOR F.B.T. ACT FOR 2008-09

No once they are consultants, FBt will not be attracted

 could u pls temme how fringe benefit tax s calculated