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
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.
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