FBT
This query is : Resolved
28 March 2009
I want to Know that what is FBT.
28 March 2009
FBT is Fringe Benefit Tax.
It is a tax payable by the employer on the expenses incurred.
The Logic behind such Tax is all the facilities provided by employer to employee is not utilised only for official purpose but personal also . Some expenses we can not segregate the official use and personal use. Hence the tax.
For example Telephone expenses. Always office telephone is not used for official use only . so some part of it is considered as personal and on that Fringe Benefit tax is being calculated.
If you wan to know more about the same let me know.
It is a tax payable by the employer on the expenses incurred.
The Logic behind such Tax is all the facilities provided by employer to employee is not utilised only for official purpose but personal also . Some expenses we can not segregate the official use and personal use. Hence the tax.
For example Telephone expenses. Always office telephone is not used for official use only . so some part of it is considered as personal and on that Fringe Benefit tax is being calculated.
If you wan to know more about the same let me know.
28 March 2009
The taxation of perquisites -- or fringe benefits -- provided by an employer to his employees, in addition to the cash salary or wages paid, is fringe benefit tax.
Any benefits -- or perks -- that employees (current or past) get as a result of their employment are to be taxed, but in this case in the hands of the employer.
This includes employee compensation other than the wages, tips, health insurance, life insurance and pension plans.
Fringe benefits as outlined in section 115WB of the Finance Bill, mean any privilege, service, facility or amenity directly or indirectly provided by an employer to his employees (including former employees) by reason of their employment.
They also include reimbursements, made by the employer either directly or indirectly to the employees for any purpose, contributions by the employer to an approved superannuation fund as well as any free or concessional tickets provided by the employer for private journeys undertaken by the employees or their family members.
Any benefits -- or perks -- that employees (current or past) get as a result of their employment are to be taxed, but in this case in the hands of the employer.
This includes employee compensation other than the wages, tips, health insurance, life insurance and pension plans.
Fringe benefits as outlined in section 115WB of the Finance Bill, mean any privilege, service, facility or amenity directly or indirectly provided by an employer to his employees (including former employees) by reason of their employment.
They also include reimbursements, made by the employer either directly or indirectly to the employees for any purpose, contributions by the employer to an approved superannuation fund as well as any free or concessional tickets provided by the employer for private journeys undertaken by the employees or their family members.
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