FBT or Fringe Benefit Tax is generally levied on employers in respect for the fringe benefits to be provided by the employers to their employees. This is applicable on any activity whether or not such activity done with the intention of deriving income, profits or gains.
Following are few of the benefits which are eligible for application of Fringe Benefits
• Sales promotion including publicity
• Employee welfare
• Conveyance, tours and travel
• Hotel, boarding, lodging
• Repair, running and maintenance of cars
• Repair, running and maintenance of aircraft
• Use of telephone
• Maintenance of any accommodation in the nature of guest house
• Festival celebrations
• Health Club
• Any other club
• Scholarship to employees’ children
• Consumption of fuel other than industrial fuel
One needs to pat FBT in advance each financial year and assessment of the same needs to be done in the later half of the year.
An employer who has paid for fringe benefits to his employees during the previous year needs to submit a return of fringe benefits in the prescribed form and produce the same to the Assessing Officer before the due date. Incase the company is the employer the due date for the same is 31st of October of any assessment year.
Delay on filing FBT will cause on levying fine of interest rate of 1% for each month.
We at Artha , we help you to file the FBT.
For any queries, please feel free to contact us at 0423666707