SURCHARGE LEVIED ON FIRM OR COMPANIES FOR F.B.T

Hi Soumyadip

Surcharge has to be levied on FBT in all cases bcoz levy of surcharge if income exceeds 1crore is for income tax purpose and not for FBT

For the purpose of FBT, surcharge has to be paid irrespective of the limit of Rs. 1 crore. you have to pay surcharge in normal cases also.

Can anyone clarify me under which section surcharge on FBT is covered?

Or which  section says that surcharge is to be levied in all cases?

surcharge is applicable for f.b.t only when it is applicable for income..

in other words surcharge is applicable only when income exceeds Rs.1 crore

(Refer G.Sekar's padhuka - Direct Taxes)

Calculation of FBT is given under Section 115 WC of Income Tax Act. This was inserted in Finance Act 2005. The rate of Surcharge are following:

1. If employer is an AOP/BOI

If Fringe Benefit doesnt exceed Rs. 10,00,000              -       NIL

If exceeds                -              10%

2. If employer is Artificial Juridical Person, a firm, a domestic company   - 10%

3. If employer is non-domestic company     -      2.5%

4. If employer is a local authority     -     NIL