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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

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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!