28 March 2009
The following heads are taken for FBT. a. conveyance b. Travelling c. Expenses related to Motor car including Depreciation d. Telephone expenses e Staff welfare f. Gift g. Festival celebration h. Club Expense
Fringe benefit is calculated as a percentage of expenses. Like for a-e Fringe benefit is 20% of the expenses. and f-h is only 50%.
On fringe benefit the tax rate is applied to find out the FBT. For example Tel exp of a Private company is 10,000 Fringe benefit is 10,000*20%=2000 FBT = 2000*33.66% =673
01 April 2009
Please mentoin wheather 33.66% is FBT rate . Are all heads charged on the above rate i.e A to E. Also mention the account entry for the FBT.
CAclubindia
