03 December 2007
When a firm declares 8% Net Profit on its gross receipts under section 44AD,what shall be the value of fringe benefit and on what amount the FBT shall be payable?
04 December 2007
THE CHARGING SECTION FOR FBT IS SEC 115WA WHICH SAYS IF FRINGE BENEFITS ARE PROVIDED BY EMLPLOYER TO ITS EMPLOYEES DURING THE PREVIOUS YEAR FBT IS PAYABLE . THE MEANINDG AND VALUE OF EACH FRINGE BENEFIT IS GIVEN IN SEC 115WB AND 115WC RESPECTIVELY. BUT FBT IS NOT BASED ON NET PROFIT OR % PROFIT TO GROSS RECEIPTS. EMPLOYER AND EMPLOYEE RELATIONSHIP IS VITAL TO ATTRACT FBT.IF NO EMPLOYEE, NO FBT R.V.RAO
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