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  Income Tax Assessment Year 2006-2007 onwards Fringe Benefit Tax (FBT) - Expenses  A Free Kaytek Business Assistance Service |
Consulting
Tax
Fringe Benefit Tax
List Of Expenses
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Income Tax Assessment Year 2006-2007 onwards Fringe Benefit Tax (FBT) - Expenses A Free Kaytek Business Assistance Service |
 Fringe Benefit Tax Expenses @ 100 % of the Amount - Online Calculator. Section 115WB(1)(b) Any free or concessional ticket provided by the employer
for private journeys of the employees or their family
members. Section 115WB(1)(c) Any contribution by the employer to an approved
superannuation fund for employees - See Note 1 below. Note 1. For Assessment year 2007-08 and subsequent assessment years, the value of fringe benefits in respect of contribution by the employer to an approved superannuation fund shall be the amount of contribution which exceeds one lakh rupees in respect of each employee. Fringe Benefit Tax Expenses @ 20 % of the Amount - Online Calculator Section 115WB(2)(A) Entertainment. Section 115WB(2)(B) Provision of Hospitality of every kind by Employer to any person. See Note 2 & Note 3 below. Note 2. Expenditure on hospitality does not include the following:- (i) any expenditure on, or payment for, food or beverage provided by the employer to his employees in office or factory; (ii) any expenditure on, or payment through paid vouchers which are not transferable and usable only at eating joints or outlets. Note 3. In the case of an employer engaged in the business of hotel 5% shall be substituted for 20%. In addition to this, in the case of an employer engaged in the business of carriage of passengers or goods by aircraft or by ship 5% shall be substituted for 20% for assessment year 2007-08 and subsequent assessment years. Section 115WB(2)(C) Conference (other than fee for participation by the employees in any conference). See Note 4 below. Note 4. For the purposes of this clause, any expenditure on conveyance, tour and travel (including foreign travel), on hotel or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purposes of conference. Section 115WB(2)(D) Sales Promotion including Publicity. See Note 5 Note 5. The following expenditure on advertisement shall not be considered as expenditure on sales promotion including publicity - (i) the expenditure (including rental) on advertisement of any form in any print (including journals, catalogues or price lists) or electronic media or transport system, (ii) the expenditure on the holding of, or the participation in any press conference or business convention, fair or exhibition, (iii) the expenditure on sponsorship of any sport event or any other event organized by any Government agency or trade association or body, (iv) the expenditure on the publication in any print or electronic media of any notice required to be published by or under any law or by an order of a court or Tribunal, |
Fringe Benefit Tax Expenses @ 20 % of the Amount - Online Calculator (cont) Note 5. (cont)
The following expenditure on advertisement shall not be considered as expenditure on sales promotion including publicity - (cont) (v) the expenditure on advertisement by way of signs, art work, painting, banners, awnings, direct mail, electric spectaculars, kiosks, hoardings, bill boards or by way of such other medium of advertisement, (vi) the expenditure by way of payment of any advertising agency for the purposes of clauses (i) to (v) above. (vii) the expenditure on distribution of free samples of medicines or of medical equipment, to doctors (not to be considered as expenditure on sales promotion, including publicity for assessment year 2007-08 and subsequent assessment years). (viii) the expenditure by way of payment to any person of repute for promoting the sale of goods or services of the business of the employer (not to be considered as expenditure on sales promotion, including publicity for assessment year 2007-08 and subsequent assessment years). ( Expenditure on Free Samples and Expenditure on Displays to be excluded from FBT as per Union Budget Announced on 1st March 2007). Section 115WB(2)(E) Employee's Welfare. See Note 6 below. Note 6. For the purposes of this clause, any expenditure incurred or payment made to fulfil any statutory obligation or mitigate occupational hazards or provide first aid facilities in the hospital or dispensary run by the employer shall not be considered as expenditure for employees’ welfare. Section 115WB(2)(F)
Conveyance, tour and travel including foreign travel. See Note 8 below. Note 8.
In the case of an employer engaged in the business of construction, or in the business of manufacture or production of pharmaceuticals or computer software, 5% shall be substituted for 20%. Section 115WB(2)(G)
Use Of Hotel, boarding and lodging facilities. See Note 9 below. Note 9.
In the case of an employer engaged in the business of manufacture or production of pharmaceuticals or computer |
Fringe Benefit Tax Expenses @ 20 % of the Amount - Online Calculator (cont) Note 9 (cont) - software, 5% shall be substituted for 20%. Besides, in the case of an employer engaged in the business of carriage of passengers or goods by aircraft or by ship 5% shall be substituted for assessment year 2007-08 and subsequent assessment years. Section 115WB(2)(H)
Repair, running (including fuel) and maintenance of motorcars and amount of depreciation theron.See Note 10 below. Note 10. In the case of an employer engaged in the business of carriage of passengers or goods by motor car, 5% shall be substituted for 20%. Section 115WB(2)(I)
Repair, running (including fuel) and maintenance of aircrafts and amount of depreciation theron.See Note 11 below. Note 11. In the case of an employer engaged in the business of carriage of passengers or goods by aircraft, ‘Nil’ shall be substituted for 20%. Section 115WB(2)(J)
Use Of Telephone (including mobile phone) other than expenditure on leased telephone lines. Section 115WB(2)(K) Maintenance of any accomodation in the nature of a Guest house other than accomodation used for training purposes. Fringe Benefit Tax Expenses @ 50 % of the Amount - Online Calculator Section 115WB(2)(L) Festival Celebrations Section 115WB(2)(M) Use Of Health Club, Sports and Similar facilities Section 115WB(2)(N) Use of Any Other Club Facilities Section 115WB(2)(O) Gifts Section 115WB(2)(P) Scholarship to the children of the employees. Fringe Benefit Tax Expenses @ 5 % of the Amount. Section 115WB(2)(Q) Tour and Travel (including foreign travel).See Note 12 below. Note 12. 12. This clause is applicable for Asessment year 2007 - 2008 and subsequent Assessment years. Above is the Value Of Fringe benefits in terms of Section 115WC read with Section 115WB for the relevant assessment years from 2006 - 2007 onwards is as per Annexure II Of Income Tax Notification No. 208/2006, dated 10-8-2006. Kaytek will not be responsible for any errors or omissions on the basis of the calculations.This cannot be construed to be legal tax advice. Please consult your tax attorney for the same. |
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