What is FBt
4 Replies
Sathyanarayana.B
(Senior Executive- Finance)
(49 Points)
Replied 28 April 2008
FBT means fringe benefit tax. this is tax on direct or deemed benefits provided by an employer to his employee. Please go through Section 115(W).
CA Akshat
(article)
(422 Points)
Replied 29 April 2008
we can say its tax on expenditure
before AY 06-07, there were taxble perqisites in the hands of employee but AY 06 07 FM Mr. Chidabaram got an excellent idea for increase in revenue.
As the perquisites was taxed @ lower slab rate most of the employees, FM decide to collect the tax via comppany so tht they can earn 30% on every perquisites. And oerquisites is not now taxable in the hands of employee
Hope the doubt is clered
Amit kedia
(article)
(200 Points)
Replied 29 April 2008
thanx but pls can u send me the chart of items of fbt with rates if possible.
Prasanna.Rm
(Finance Pro)
(110 Points)
Replied 29 April 2008
Hi amit,
FRINGE BENEFIT TAX- as the name suggests its a tax on Fringe benfit ie-on Extra benefits provided by the employer to employee.
The related sec 115WB of the income tax act deals with all the benefits(direct as well as deemed) covered.
The said sec can be googled in the income tax act,where you can retrieve all the eligibilty rate on the expenses of the employer (benefitsof the employee)and the rate of FBT(currently it is 33.99%) on the eligile amount of expense.
once if you read that,think so,you may get an idea abt this "smart tax".If still you bug,come back to me.
Happy reading....
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