FBT Recovery from Employee

This query is : Resolved

Prasanna Bhat (Querist)
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26 September 2008 As we are passing on the fringe benefit to the employees like Telephone Reimbursement and reimbursement components like entertainment, vehicle running expenses for manager. Is there any way that we can recover some FBT from the employee. For example 20% FBT on vehicle running expenses can we recover 6 or 8 % from employees pls let me know

Taxguy

Taxguy (Expert)
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26 September 2008 It is levy on the employer and not on the employee. so no.

Prasanna Bhat

Prasanna Bhat (Querist)
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26 September 2008 But i heard few companies are doing it pls clarify and let me know

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Taxguy

Taxguy (Expert)
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26 September 2008 Legally no, with some corrupt practice you can collect but without accounting it.

CHEZHIYAN

CHEZHIYAN (Expert)
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26 September 2008 You cannot collect the FBT from a Employee in any condition..

it is Illegal

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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26 September 2008 You are right. Some companies are following this practice, but as Chezhiyan said, this is illegal. Those companies do not mention this thing in their appointment or offer letter. All this is done on verbal mutual understanding.