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FRINGE BENEFIT TAX

FRINGE BENEFIT TAX

2 April 18, 2023

Introduction to Fringe Benefit Tax..!!!!

3 April 18, 2023

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 TaxU/S-115WA

Requirement For Fringe Benefit TaxU/S-115WA

4 April 18, 2023

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 EmployerU/S-115W(a)

Definition Of EmployerU/S-115W(a)

5 April 18, 2023

30% on the Value of Fringe Benefit- u/s-115WC

Add:- Surcharge: Rates For AOP/BOI:

If FB does not exceeds 1000000 Nil

If FB exceeds 1000000 10% Artificial.J.Person, Firm 10% Non-Domestic Co. 2.5%Local Authority Nil

Add:- Education Cess:

2% on [Tax+Surcharge]

Computation of Fringe Benefit Tax Liability & Rates.

Computation of Fringe Benefit Tax Liability & Rates.

6 April 18, 2023

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 100000.

Fringe Benefit Expenses..!!!Fringe Benefit Expenses..!!!

7 April 18, 2023

Deemed Fringe Benefit..!!!Covered u/s-115WB(2)

Deemed Fringe Benefit..!!!Covered u/s-115WB(2)

Sections Fringe Benefit Expenses Rate

115WB(2)(A) Entertainment 20%

115WB(2)(B) Provision of Hospitality 20%

115WB(2)(C) Conference 20%

115WB(2)(D) Sales Promotion & Publicity. 20%

115WB(2)(E) Employee’s Welfare 20%

115WB(2)(F) Conveyance 20%

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 House 20%

115WB(2)(L) Festival Celebrations 50%

115WB(2)(M) Health Club 50%

115WB(2)(N) Other Club Facilities 50%

115WB(2)(O) Gifts 50%

115WB(2)(P) Scholarships 50%

115WB(2)(Q) Tour & Travels (incl. Foreign Travels) 5%

8 April 18, 2023

Quarter Due Dates

Apr-Jun On or before 15th JulyJuly-Sept On or before 15th SepOct-Dec On or before 15th DecJan-Mar On or before 15th Mar(Before the quarter ends)

Advance Tax due date..!!!Advance Tax due date..!!!

9 April 18, 2023

Sections List115WA

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 ListSection List

10 April 18, 2023

Updations…!!!Updations…!!!

Top 10 FBT Payers of IndiaCompanies FBT(fig in cr) As % of employee expense.

SBI 88.5 1.1IOC 38.9 1.5RIL 37 3.1

ICICI 36.9 2.3HUL 35 5.4SAIL 26.5 0.5

BHARTI 25.5 2.2TCS 17.8 0.3ITC 16.1 2.5

TISCO 16 1.1

11 April 18, 2023

Thank You!