Fringe Benefit Tax (FBT)
Fringe Benefit Tax (FBT)
Fringe Benefit Tax (FBT)
Road to FBT…….
China
Hong Kong
Japan
Australia
Malaysia
Russia
New Zealand
Singapore
UK
USA
Indian Model - Similar to that of Australia & New Zealand
Meaning of Fringe Benefits
“An Additional benefit” to an employee
in addition to regular salary or wages
A Company
A Firm
An AOP or a BOI
A Local Authority
Every Artificial Juridical person, not
falling within any of the above
The Following entities would also be
liable to pay FBT:
An Individual
A HUF
An AOP / BOI whose income is eligible
for exemption U/s 10(23C) or which is
registered as Fund or Trust
Central Govt.
A State Govt.
Perquisites taxable in the Perquisites taxable in the
hands of Employees (Up hands of Employees
to FY 2004-2005) (From FY 2005-2006)
Interest-free or Interest-free or
concessional loan concessional loan
Meals, lunch, Use of Movable asset
refreshment, etc. Transfer of movable
Travelling, touring, asset
accommodation
Gift, voucher, token
Credit Card
Club
Use of Movable asset
Transfer of movable asset
BASIS OF CHARGE
Fringe benefits are provided or deemed to be provided
by an employer
to his / its employees
during the previous year
in the course of business
Or
Short Payment of Advance tax
Interest = 1% p.m.
SEPARATE RETURN OF FBT
TO BE FILED
DUE DATES:
Company or Tax Audit cases - 31st October
In any other case – 31st July
2 Types
Fringe Benefit - Part A
Contribution to an Approved
Superannuation Fund for employees
16 Types
Deemed Fringe Benefit - Part B
Entertainment (6.732%)
Deemed Fringe Benefit - Part B
Provision of hospitality
Effective Tax = 6.732% (1.683% - Hotel)
Conference (6.732%)
Gifts (16.83%)
Deemed Fringe Benefit - Part B
Scholarships (16.83%)
Expenses related to employees but do
not attract FBT
Employers contribution to PF / ESI / Gratuity
Medical reimbursement
Transport Allowance
Foods and beverages to employees in factory or office
or through non-transferable coupons
Sales incentives
Tips to classify expenses in Tally
Purchases
Fringe Benefit expenses
TDS expenses
Interest
Others