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Fringe Benefit Tax (FBT) need not be a pain !!
Fringe Benefit Tax (FBT) can be perhaps a pleasure for both employers and
employees when :
- The FBT rules and guidelines are simple, easy to understand and implement.
- It can lead to less complex employee compensation schemes and easier to
administer salary packets for organizations.
- It clearly helps bring about reduction in paperwork for organizations who are already struggling with other newer taxes like VAT (Value Added Tax) and Service Tax since the past few months.
Fringe Benefit Tax (FBT) can be perhaps a pleasure for both employers and
employees when :
- The FBT rules and guidelines are simple, easy to understand and implement.
- It can lead to less complex employee compensation schemes and easier to
administer salary packets for organizations.
- It clearly helps bring about reduction in paperwork for organizations who are already struggling with other newer taxes like VAT (Value Added Tax) and Service Tax since the past few months.
posted by Mahesh Khatri at 11:40 AM
3 Comments:
the government apes developed countries in tax methods but they forget that we have no means of ensuring the benefit going to citizens from those tax,
fbt will kill all small firms
government apes australia for fbt but it has no way of ensuring australian standard for citizen's life
FBT is a severe pain on the individual employees. Employers can pass on the tax incidence to the employees, who in turn, will have to pay higher income taxes. Employers may restructure the salary package of the employees in order to reduce their FBT liability, which in turn can increase the liability of empoyees. There may be a restruction on the use of mobile phones, or they may be given a fixed amount as office conveyance. Even gifts by way of employee rewards may also get a beating. Hence, the Finance Ministry should carve out a limit for every head under the FBT to benefit the individual employees.
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