Interest for FBT

This query is : Resolved

Khushbu (Querist)
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08 October 2008 whether interest leviable under Section 234B & C of Income Tax are applicable to FBT also?
or there is straight provision of charging 1 per cent p.m. or part of month.

PIYUSH JAIN

PIYUSH JAIN (Expert)
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08 October 2008 1) The tax rate for fringe benefits is 30% on the value of fringe benefit + Surcharge + Cess.

2) Every company is required to furnish a return on FBT within due date i.e. 30 September of the Assmnt Year.

3) The advance tax in case of FBT is to be paid in the following installments on the following dates: Due Dates Amount of Tax payable On or before 15 June - not less than15% of tax payable On or before 15 September - not less than 45% of tax payable On or before 15 December - not less than 75% of tax payable On or before 15 March - not less than 100% of tax payable

4) If advance tax installment is not paid in full, interest at 1 per cent a month for three months on the amount that falls short of the required payment will have to be paid.. However, in the case of default on the last installment (March 15), the penal interest of 1 per cent is chargeable for only a month.

5) Where the return of fringe benefits for any assessment year is furnished after the due date, or is not furnished, the employer shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,upto the date of furnishing of return on amount of Tax as reduced by the advance tax paid.