1 FRINGE BENEFIT TAX FRINGE BENEFIT TAX

April 28, Introduction to Fringe Benefit Tax..!!!!

April 28,  The FBT is payable by an Employer.  The Employer is liable only if he has an Employee.  Employer is liable only if he has provided Fringe Benefit and/or is deemed to have provided Fringe Benefit to his employees.  FBT is payable at the Rate of 30% (plus applicable Surcharge plus Education Cess) of the Value of Fringe Benefit Provided.  FBT is payable irrespective of whether “Employer” is liable to pay Income-Tax on his total income or not.  The FBT is payable by an Employer.  The Employer is liable only if he has an Employee.  Employer is liable only if he has provided Fringe Benefit and/or is deemed to have provided Fringe Benefit to his employees.  FBT is payable at the Rate of 30% (plus applicable Surcharge plus Education Cess) of the Value of Fringe Benefit Provided.  FBT is payable irrespective of whether “Employer” is liable to pay Income-Tax on his total income or not. Requirement For Fringe Benefit Tax U/S-115WA

April 28, Employer Includes:  Company.  Firm.  Association of persons or a Body of individual.  A local authority  Every artificial Juridical Person. Employer Includes:  Company.  Firm.  Association of persons or a Body of individual.  A local authority  Every artificial Juridical Person. Employer Excludes:  Individual & HUF.  Fund/Trust/Institution eligible for Exemption u/s-10(23).  Fund/Trust/Institutions registered u/s-12AA  A Political Party registered u/s 29A Definition Of Employer U/S-115W(a) Definition Of Employer U/S-115W(a)

April 28,  30% on the Value of Fringe Benefit- u/s-115WC Add:- Surcharge: Rates  For AOP/BOI: If FB does not exceeds Nil If FB exceeds %  Artificial.J.Person, Firm10%  Non-Domestic Co.2.5%  Local AuthorityNil Add:- Education Cess: 2% on [Tax+Surcharge]  30% on the Value of Fringe Benefit- u/s-115WC Add:- Surcharge: Rates  For AOP/BOI: If FB does not exceeds Nil If FB exceeds %  Artificial.J.Person, Firm10%  Non-Domestic Co.2.5%  Local AuthorityNil Add:- Education Cess: 2% on [Tax+Surcharge] Computation of Fringe Benefit Tax Liability & Rates.

April 28, Covered u/s-115WB(1)  Any Privilege, Service, Facility or Amenity Whether provided Directly or Indirectly, or whether by way of reimbursement to Employee.  Any Free or Concessional Ticket provided by the employer for private Journeys of the employee’s or his family.  Expenses spent towards contribution in Superannuation Fund. Which is exempted upto the limit of Covered u/s-115WB(1)  Any Privilege, Service, Facility or Amenity Whether provided Directly or Indirectly, or whether by way of reimbursement to Employee.  Any Free or Concessional Ticket provided by the employer for private Journeys of the employee’s or his family.  Expenses spent towards contribution in Superannuation Fund. Which is exempted upto the limit of Fringe Benefit Expenses..!!!

April 28, Deemed Fringe Benefit..!!! Covered u/s-115WB(2) Sections Fringe Benefit ExpensesRate 115WB(2)(A) Entertainment20% 115WB(2)(B) Provision of Hospitality20% 115WB(2)(C) Conference20% 115WB(2)(D) Sales Promotion & Publicity.20% 115WB(2)(E) Employee’s Welfare20% 115WB(2)(F) Conveyance20% 115WB(2)(G) Use of Hotel, Boarding, Lodging Facilities.20% 115WB(2)(H) Repairs, Running, Maintenance of Motor Car & the amount of Depreciation thereon (including Fuel)20% 115WB(2)(I) Repairs, Running, Maintenance of Aircrafts & the amount of Depreciation thereon (including Fuel)20% 115WB(2)(J) Telephones (incl. Mobiles)20% 115WB(2)(K) Guest House20% 115WB(2)(L) Festival Celebrations50% 115WB(2)(M) Health Club50% 115WB(2)(N) Other Club Facilities50% 115WB(2)(O) Gifts50% 115WB(2)(P) Scholarships50% 115WB(2)(Q) Tour & Travels (incl. Foreign Travels)5%

April 28, QuarterDue Dates Apr-JunOn or before 15 th July July-SeptOn or before 15 th Sep Oct-DecOn or before 15 th Dec Jan-MarOn or before 15 th Mar(Before the quarter ends) Advance Tax due date..!!!

April 28, SectionsList 115WA 115WB 115WC 115WD(1) 115WE 115WF 115WG 115WH 115WI 115WJ 115WK 115WL Requirements of FBT Fringe Benefit Expenses Value of Fringe Benefits Return of FB Assessment Best Judgment Assessment FB Escaping Assessment Issue of notice where FB have Escaped Assessment Payment of FBT Advance Tax in respect of FB Interest for default in furnishing return of FB Application of Other provisions of this act. Section List

April 28, Updations…!!! Top 10 FBT Payers of India CompaniesFBT(fig in cr)As % of employee expense. SBI IOC RIL373.1 ICICI HUL355.4 SAIL BHARTI TCS ITC TISCO161.1

April 28, Thank You!