Download - 1 FRINGE BENEFIT TAX FRINGE BENEFIT TAX. August 19, 2015 2 Introduction to Fringe Benefit Tax..!!!!
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FRINGE BENEFIT TAX
FRINGE BENEFIT TAX
2 April 19, 2023
Introduction to Fringe Benefit Tax..!!!!
3 April 19, 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.
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 19, 2023
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
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 19, 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,Domestic Co.,Firm 10% Non-Domestic Co. 2.5%Local Authority Nil
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 1000000 Nil
If FB exceeds 1000000 10% Artificial.J.Person,Domestic Co.,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 19, 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
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 19, 2023
Entertainment.Provision of Hospitality.Conference.Sales Promotion & Publicity.Employee’s Welfare.Conveyance.Use of Hotel,Boarding,Lodging
Facilities.Repairs,Running,Maintenance of
Motor Car & the amount of Depreciation thereon(including Fuel)
Entertainment.Provision of Hospitality.Conference.Sales Promotion & Publicity.Employee’s Welfare.Conveyance.Use of Hotel,Boarding,Lodging
Facilities.Repairs,Running,Maintenance of
Motor Car & the amount of Depreciation thereon(including Fuel)
Repairs,Running,Maintenance of Aircrafts & the amount of Depreciation thereon(including Fuel).
Telephones (including Mobiles)Guest House.Festival Celebrations.Health Club.Other Club Facilities.Gifts.ScholarshipsTour & Travels (including Foreign
travels)
Repairs,Running,Maintenance of Aircrafts & the amount of Depreciation thereon(including Fuel).
Telephones (including Mobiles)Guest House.Festival Celebrations.Health Club.Other Club Facilities.Gifts.ScholarshipsTour & Travels (including Foreign
travels)
Deemed Fringe Benefit..!!!Covered u/s-115WB(2)
Deemed Fringe Benefit..!!!Covered u/s-115WB(2)
8 April 19, 2023
Includes:Exp in-connection with
exhibition, performance,amusement,game or sports.
Reimbursement of expenses.
Exp on non-festive occasions.
Purchase of ticket for charity Shows,sports event.
Exp on Firecracker on Annual day.
Includes:Exp in-connection with
exhibition, performance,amusement,game or sports.
Reimbursement of expenses.
Exp on non-festive occasions.
Purchase of ticket for charity Shows,sports event.
Exp on Firecracker on Annual day.
Excludes:
Exp on festive-occasion.
Excludes:
Exp on festive-occasion.
“Entertainment” u/s-115WB(2)(A)Rate-20%
“Entertainment” u/s-115WB(2)(A)Rate-20%
9 April 19, 2023
Includes:
Food & Beverages
After office hours.
In-house training.
other than employees with in office.
In hotel business-drinks to customer as welcome drink.
Training center-(temporary)
Includes:
Food & Beverages
After office hours.
In-house training.
other than employees with in office.
In hotel business-drinks to customer as welcome drink.
Training center-(temporary)
Excludes:
To employees with in office or factory.
Paid vouchers
Training center –(permanent)
Excludes:
To employees with in office or factory.
Paid vouchers
Training center –(permanent)
“Provision for Hospitality” u/s-115WB(2)(B) Rate-20%
“Provision for Hospitality” u/s-115WB(2)(B) Rate-20%
10 April 19, 2023
Includes:
Conveyance,tour,travel on hotel or boarding & lodging in connection to a conference.
Programs organized by Trade bodies or institutions.
Complementary exp to participation fee.
Conference for agent & dealers.
Includes:
Conveyance,tour,travel on hotel or boarding & lodging in connection to a conference.
Programs organized by Trade bodies or institutions.
Complementary exp to participation fee.
Conference for agent & dealers.
Excludes:
Fee’s for participation by em’ee in any conference.
Excludes:
Fee’s for participation by em’ee in any conference.
“Conference” u/s-115WB(2)(C)Rate-20%
“Conference” u/s-115WB(2)(C)Rate-20%
11 April 19, 2023
Includes:
If research done by own self for market or product.
Free offers,free samples of products,exp on artwork or royalty.
Winning trips by customer or client (travel+lodging+boarding)
Distribution of free trade samples.
Includes:
If research done by own self for market or product.
Free offers,free samples of products,exp on artwork or royalty.
Winning trips by customer or client (travel+lodging+boarding)
Distribution of free trade samples.
Excludes:Brokerage & selling Com.
Exp on salesman(being em’ee)
Rebates,discount & bonus points on credit card.
Incentives to distributor.
Market or product research from outside agency.
Exp on call centers as post sale services.
Exp on ad-films.
Excludes:Brokerage & selling Com.
Exp on salesman(being em’ee)
Rebates,discount & bonus points on credit card.
Incentives to distributor.
Market or product research from outside agency.
Exp on call centers as post sale services.
Exp on ad-films.
“S.P & Publicity” u/s-115WB(2)(D)Rate-20%
“S.P & Publicity” u/s-115WB(2)(D)Rate-20%
12 April 19, 2023
Includes: Group personal accidents/
workmen compensation insurance/ group health insurance/ group medical n life insurance (under non-statutory obligation).
Reimbursement by em’er on medical treatment not exceeding 15000.
Injuries
Subsidy
Various exp in em’ees colony.
Book & periodical to em’ee
Prize, rewards, awards.
Transport facility.
Includes: Group personal accidents/
workmen compensation insurance/ group health insurance/ group medical n life insurance (under non-statutory obligation).
Reimbursement by em’er on medical treatment not exceeding 15000.
Injuries
Subsidy
Various exp in em’ees colony.
Book & periodical to em’ee
Prize, rewards, awards.
Transport facility.
Excludes:Payment against Statutory
obligation.
Gratuity fund
Medical exp above 15000
Treatment of injuries-”statutory obligation”
Construction site.
Excludes:Payment against Statutory
obligation.
Gratuity fund
Medical exp above 15000
Treatment of injuries-”statutory obligation”
Construction site.
“Employee’s welfare” u/s-115WB(2)(E) Rate-20%
“Employee’s welfare” u/s-115WB(2)(E) Rate-20%
13 April 19, 2023
Includes:Exp for clients business
reimbursed.
Leave travel concession
Reimbursement of car exp.
Rent paid for operating lease.
Includes:Exp for clients business
reimbursed.
Leave travel concession
Reimbursement of car exp.
Rent paid for operating lease.
Excludes:Allowance for journey from
home to work place.
Allowance
Professional travels. (reimbursement)
Excludes:Allowance for journey from
home to work place.
Allowance
Professional travels. (reimbursement)
“Conveyance” u/s-115WB(2)(F)Rate-20%
“Conveyance” u/s-115WB(2)(F)Rate-20%
14 April 19, 2023
Includes:Pre-diem allowance.
On hotel,boarding,lodging.
Includes:Pre-diem allowance.
On hotel,boarding,lodging.
Excludes:
Fixed hotel allowance.
Excludes:
Fixed hotel allowance.
“Use of Hotel,Boarding & Lodging
Facilities”u/s-115WB(2)(G) Rate-20%
“Use of Hotel,Boarding & Lodging
Facilities”u/s-115WB(2)(G) Rate-20%
15 April 19, 2023
Includes:Repairs.
Running(including fuel).
Maintenance.
Depn on motor cars.
Lease rent – financial lease
Garage rent
Drivers salary
Int. on loan.
Includes:Repairs.
Running(including fuel).
Maintenance.
Depn on motor cars.
Lease rent – financial lease
Garage rent
Drivers salary
Int. on loan.
Excludes:Car excludes:
• Delivery vans
• Display vans
• Tempos
• Trucks
• Buses
• Tractor
• Ambulance
• But includes Jeep.
Excludes:Car excludes:
• Delivery vans
• Display vans
• Tempos
• Trucks
• Buses
• Tractor
• Ambulance
• But includes Jeep.
“Repairs,Running,Maintenance of Motor
Car” u/s-115WB(2)(H) Rate-20%
“Repairs,Running,Maintenance of Motor
Car” u/s-115WB(2)(H) Rate-20%
16 April 19, 2023
Includes:Repairs.
Running(including fuel).
Maintenance.
Depn on Aircrafts.
Lease rent – financial lease
Garage rent
salary
Int. on loan.
Includes:Repairs.
Running(including fuel).
Maintenance.
Depn on Aircrafts.
Lease rent – financial lease
Garage rent
salary
Int. on loan.
Excludes:
For em’er engaged in carriage of passengers/ goods.
Excludes:
For em’er engaged in carriage of passengers/ goods.
“Repairs,Running,Maintenance of Aircraft” u/s-115WB(2)(I) Rate-20%
“Repairs,Running,Maintenance of Aircraft” u/s-115WB(2)(I) Rate-20%
17 April 19, 2023
Includes:All except exclusions.
Includes:All except exclusions.
Excludes:Exp on leased Telephones.
Excludes:Exp on leased Telephones.
“Telephones(including Mobile)” u/s-115WB(2)(J) Rate-20%
“Telephones(including Mobile)” u/s-115WB(2)(J) Rate-20%
18 April 19, 2023
Includes:Food in G.H
Contract charges
Rent
Maintenance charges
Rent or Hire charges to hotel if stay exceeding 182 days.
Includes:Food in G.H
Contract charges
Rent
Maintenance charges
Rent or Hire charges to hotel if stay exceeding 182 days.
Excludes:Exp on refrigerator, t.v,
furniture, etc
Depreciation on G.H
Maintenance exp for training purpose.
Excludes:Exp on refrigerator, t.v,
furniture, etc
Depreciation on G.H
Maintenance exp for training purpose.
“Guest house” u/s-115WB(2)(K)Rate-20%
“Guest house” u/s-115WB(2)(K)Rate-20%
19 April 19, 2023
Includes:Meeting/get together on
festive occasions.
Includes:Meeting/get together on
festive occasions.
Excludes:On independence day or
republic day.
Excludes:On independence day or
republic day.
“Festival Celebrations” u/s-115WB(2)(L) Rate-50%
“Festival Celebrations” u/s-115WB(2)(L) Rate-50%
20 April 19, 2023
Includes:Hotel resort providing health &
fitness facility.
Subscription for membership in club
Fitness centers, health saloon, gymnasium, massage centers, slimming center, aerobics.
Includes:Hotel resort providing health &
fitness facility.
Subscription for membership in club
Fitness centers, health saloon, gymnasium, massage centers, slimming center, aerobics.
Excludes:Excludes:
“Use of health club & similar facility” u/s-115WB(2)(M) Rate-50%
“Use of health club & similar facility” u/s-115WB(2)(M) Rate-50%
21 April 19, 2023
Includes:Entrance fee
Reimbursement of exp
Includes:Entrance fee
Reimbursement of exp
Excludes:Depreciation on club building
Fixed club allowance.
Excludes:Depreciation on club building
Fixed club allowance.
“Use of any other Club facility” u/s-115WB(2)(N) Rate-50%
“Use of any other Club facility” u/s-115WB(2)(N) Rate-50%
22 April 19, 2023
Includes:In cash
In kind
Trade promotion scheme (with different product)
Customers
Marriage or others
Any other person.
Includes:In cash
In kind
Trade promotion scheme (with different product)
Customers
Marriage or others
Any other person.
Excludes:Excludes:
“Gifts” u/s-115WB(2)(O)Rate-50%
“Gifts” u/s-115WB(2)(O)Rate-50%
23 April 19, 2023
Includes:To em’ees & others.
Em’ees sent to educational institutions.
Awarded to student or trainee.
Includes:To em’ees & others.
Em’ees sent to educational institutions.
Awarded to student or trainee.
Excludes:Excludes:
“Scholarship” u/s-115WB(2)(P)Rate-50%
“Scholarship” u/s-115WB(2)(P)Rate-50%
24 April 19, 2023
Includes:
Only traveling fair can be claimed.
Includes:
Only traveling fair can be claimed.
Excludes:Excludes:
“Tour,Travel (Including Foreign Travel)” u/s-115WB(2)(Q) Rate-5%
“Tour,Travel (Including Foreign Travel)” u/s-115WB(2)(Q) Rate-5%
25 April 19, 2023
Industry Specific Amendments..!!!Industry Specific Amendments..!!!Employers engaged in the business of:
Hospitality Conveyance Hotel Boarding &
lodging
Repairs, running,
Maintenance n Depn
Hotel 5%
Construction 5%
Manufacture n Production of Pharmaceutical.
5% 5%
Manufacture n Production of Computer Software.
5% 5%
Carriage of Passengers/goods by Motor
Car
5% 5% 5%
Carriage of Passengers/goods by
Aircraft.
5% 5% NIL
26 April 19, 2023
Employer is a must.
No segregation of expenses incurred on em’ees or others.
Capital or Revenue Expenditure.
Preoperative Expense.
Expenditure to be Calculated on Due Dates
Net expenses to be considered in case of recovery from employees.
Cost Sharing agreement with group companies.
Disallowance u/s-37,40,40A & 43B.
Employer is a must.
No segregation of expenses incurred on em’ees or others.
Capital or Revenue Expenditure.
Preoperative Expense.
Expenditure to be Calculated on Due Dates
Net expenses to be considered in case of recovery from employees.
Cost Sharing agreement with group companies.
Disallowance u/s-37,40,40A & 43B.
Other Propositions..!!!-1Other Propositions..!!!-1
27 April 19, 2023
Bogus Expenditure.
FBT in case of depreciation.
Reimbursement of expenditure by Client.
Accounting Records.
FBT not Deductible – as per sec – 40(a)(ic).
FBT deductible for computing Book Profits-[115JB]
Credit of FBT Paid by a foreign co. in the country of residence.
Bogus Expenditure.
FBT in case of depreciation.
Reimbursement of expenditure by Client.
Accounting Records.
FBT not Deductible – as per sec – 40(a)(ic).
FBT deductible for computing Book Profits-[115JB]
Credit of FBT Paid by a foreign co. in the country of residence.
Other Propositions..!!!-2Other Propositions..!!!-2
28 April 19, 2023
Quarter Due Dates
Apr-Jun On or before 15th JulyJuly-Spet On or before 15th OctOct-Dec On or before 15th JanJan-Mar On or before 15th Mar(Before the quarter ends)
Advance Tax due date..!!!Advance Tax due date..!!!
29 April 19, 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
30 April 19, 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 2.3HLL 35 5.4SAIL 26.5 0.5
BHARTI 25.5 2.2TCS 17.8 0.3ITC 16.1 2.5
TISCO 16 1.1
31 April 19, 2023
Infosys – dating exp reimbursed by em’er
kingfisher airways & Air deccan:
Indirect benefits provided.
"Awake, Arise and Stop not , till the goal is achieved."
Infosys – dating exp reimbursed by em’er
kingfisher airways & Air deccan:
Indirect benefits provided.
"Awake, Arise and Stop not , till the goal is achieved."
Case Laws…!!!Case Laws…!!!
32 April 19, 2023
Thank You!