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Surcharge on FBT

Shiva (CA) (37 Points)

01 August 2008

Please tell me if Surcharge on FBT is appliacble in case Partnership Firm's total income does not exceed 1 Crore.
(Whether surcharge applicable when the total income exceeds 1 crore but Value of fringe benefit does not exceed 1 Crores)

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22 Replies

Rahul Kakaria (student) (99 Points)
Replied 01 August 2008

Originally posted by :Shiva
"	Please tell me if Surcharge on FBT is appliacble in case Partnership Firm's total income does not exceed 1 Crore. (Whether surcharge applicable when the total income exceeds 1 crore but Value of fringe benefit does not exceed 1 Crores)	"

(Guest)

Surcharge on FBT is applicable

M.Sriram Shenoy (CA Final) (814 Points)
Replied 02 August 2008

Surcharge on FBT will be applicable irrespective of the fact, whether the income of the firm or company exceeds Rs.1 crore or not.

FBT surcharge doesnot carry any bar as of the normal surcharge, which is applicable on Income Tax depending upon level of income of assessees.

Arihant (ARTICLES) (34 Points)
Replied 03 August 2008

the surcharge is only applicable if the payment in respect of FBT exceeds 1 crore. in your case the fbt is not applicable

BIJAY MITTAL (CHARTERED ACCOUNTANTS) (47 Points)
Replied 03 August 2008

The concept of surcharge is applicable in case of income tax and TDS ie if the income during the year exceed one crore,10% surcharge is applicable on the taxable income.Contrary FBT is applicable on the expenditure expended by the employer.Here the concept of income is not applicable.Hence surcharge is charged on the tax calculated on the value of fringe benefit at 30%(SC+EC+SHEC)

(Guest)

Surcharge is applicable irrespective of income crieteria for FBT in case of firms

(Guest)

Please visit link www.indiataxes.com which talks about surcharge on FBT only if income exceeds the limit.

Is that correct

CA SURAJIT KASHYAPI (Service) (25 Points)
Replied 21 August 2008

Tax will be levied @ 30% on the value of fringe benefits. Surcharge will be applicable on FBT in the following manner. The income of the assesse will not be considerable factor in this calculation:-

If the employer is Co-operative Society / Local authority Nil

If the employer is Firm / Company/ Art Judicial person 10%

If the employer is foreign company 2.5%

Cess will be applicable on (Basic tax + Surcharge) of FBT.

In the case of a firm the FBT rate will be 33.66%.

Shikha Sharma (Chartered Accountant) (311 Points)
Replied 26 August 2008

Surcharge on FBT is applicable irrespective of the fact that your income exceeds certain limit. Even if the turnover of a person is nil, but has fringe benefit tax liability, surcharge @ 10% is applicable on the same.