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   Income Tax Assessment Year 2006-2007 onwards India - Fringe Benefits - Definition and Scope of Applicability. Benefit From  A Free Kaytek Business Assistance Service |
Consulting
Tax
Fringe Benefit Tax
Definition
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Income Tax Assessment Year 2006-2007 onwards India - Fringe Benefits - Definition and Scope of Applicability. Benefit From A Free Kaytek Business Assistance Service |
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 Fringe Benefit Definition The Finance Bill 2005 - Section 115WB (1) defines Fringe Benefits as follows :
(a) Any privilege, service, facility or amenity, directly or
indirectly, provided by an employer to his employees
(including former employee or employees) by reason of their
employment; or (b) Any reimbursement, directly or indirectly, made by the
employer to his employees for any purpose; (c) Any free or concessional ticket provided by the employer
for private journeys of the employees and their family
members; and (d) Any contribution by the employer to an approved
superannuation fund. |
Note : The privilege, service,
facility or amenity does not include perquisites in respect of
which tax is paid or payable by the employee or
any benefit or amenity in the nature of free or subsidised
transport or any such allowance provided by the employer to its
employees for journeys by the employees from Their residence to
the place of work or Such place of work to the place of
residence. Scope of Applicability of Fringe Benefit Tax (FBT) Who is liable to pay FBT ? The liability to pay Fringe Benefit Tax arises whenever there is an employer-employee relationship. |
Who is an employer ? Under FBT, an employer could be any of the following A company, a firm, an association of persons or a body of individuals, a local authority and every artificial judicial person. Who is NOT liable to pay FBT ? Individuals, Sole Proprietorship Concerns and HUFs (Hindu Undivided Families) are exempt from Fringe Benefit Tax. Trusts or Institutions continuing to remain eligible for exemption under Section 10(23C) or remaining registered under Section 12AA of the Income Tax Act need not pay Fringe Benefit Tax. |
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