|
|
| *Ostroff, Fair and Company>>>India Taxes |
What about fringe benifit tax? |
What about fringe benifit tax? The imposition of fringe benefit tax that proposes to tax companies on perquisites fringe Benefit Tax is the master stroke of Mr Chidambaram who himself had quite an experience of taxation laws as lawyer. There was a long drawn battle between Revenue Department and companies over the payments and expense which are on the grey area. For example, it was common knowledge that the companies and business-mans were giving perquisites to its employees but in form of reimbursing the same as if the expense was done for carrying out the business of the person/company. For example, a company may give foreign holiday to its executive , but show it as if he had gone to attend a seminar in that country. The car facility will be provided to the employee exclusively for personal use, but in its own accounts shown as companies expense. There were numerous legal cases and it was hard for anybody to reach a conclusion as what is companies expense what was perquisites. Mr Chidambram, tried to sweep all these creative tax solution adopted by companies under FBT. Now he has formulated a law wherein the taxmen will not go whether it was for personal use of the employee , there is lump sum computation of dis allowance of specified expenditure charged to company's account. The law is evolving and in spite of lots of hue and cry of the industry, Govt is carrying out this law on account of huge collection of tax from the heads which were previously only bringing cost to Exchequer in form of litigation. If you want to read more, read explantory note by Central Board of Direct Taxes CIRCULAR NO. 8/2005 29-8-2005 . |
| Tags |
| United Kingdom Taxes Spain Taxes Singapore Taxes Mexico Taxes Ireland Taxes India Taxes Germany Taxes Canada Taxes Australia Taxes Small Business |
Finance Categories--Copyright/IP Policy--Contact Webmaster |