A company has formulation division means pharma division. And it has another chemical division means bulk drugs made by that division , lower rate FBT applicable these two divisions ???? OR Chemical divison will be treated as a Pharma division ????
1 Replies
CA Somnath
(Ca + Article Assistent)
(32 Points)
Replied 16 September 2008
As per CIRCULAR NO.8/2005,
In the case of an employer engaged in the manufacture or production of pharmaceuticals or computer software, the value of fringe benefit under the heads conveyance, tour and travel (including foreign travel) and use of hotel, boarding and lodging facilities is restricted to 5% of such expenses; That is lower rate of fbt is applicable only if the division is engaged in manufacture or production of Pharmaceutical. In short, expenses should be related to manufacture or production of Pharmaceutical division.
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