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FBT

Miss Komal Mantri (Chartered Accountant ) (1974 Points)

01 September 2007

Dear Members

What will be the rate of FBT in case of firm & companies having taxable income of Rs. 1 Crore or less for the A.Y. 2008-09??

Will it be 30.99% i.e. 30% + (2%EC+1% SHEC) or 33.99% i.e.30%+10%+(2%EC+1% SHEC).

Regards

Komal Mantri

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9 Replies

CA vikash sureka (chartered accountant) (129 Points)
Replied 01 September 2007

33.99%...

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Miss Komal Mantri (Chartered Accountant ) (1974 Points)
Replied 01 September 2007

Thanks for your answer..
Please explain your answer i.e Why it shld be 33.99% and not 30.99

MAHENDRA IYER (SERVICE) (315 Points)
Replied 03 September 2007

FBT rate in case of Employer being AOP/BOI and FBT payable does not exceed Rs. 10Lakhs the effective rate would be 30.9% whereas in case of Firm, Companies and artificial juridical person FBT rate irrespective of amount of FBT payable it would be 33.99%

Ritesh (Accountant) (692 Points)
Replied 03 September 2007

it will be 33.99%

CA Mohit Kumar Tyagi (AM - Finance) (164 Points)
Replied 25 September 2007

it will be 33.99%, suppose expenditure is 2000 then taxable amount for FBT(depend upon tax rate) is 100(taken as 5%), then FBT would be, 100 *30% = 30 +surcharge 10% = 3 ------------- 33 + Education cess 3% = 00.99 (a.y. 2008-09) -------------- 33.99 ---------------

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CMA Gul S (Program Manager) (5910 Points)
Replied 26 September 2007

It is Basic TAx, Surcharge and Education Cess

Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 29 September 2007

HI
Rate of FBT is 33.99 % as surcharge is not leviable on companies and firms having total income upto Rs 1 crore only in respect of corporate tax and not FBT .Thus rate of FBT is 33.99% for them.