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Excerpt: Is FBT is applicable to employer on reimbursement of medical bills upto Rs.15000 to their employees?radhi68@………comYes.FAQ no 69 of CBDT’s Circular 8 of 2005 clarified regarding the issue of taxing medical allowance under Fringe Benefit Tax as under:Whether medical reimbursement up to Rs. 15,000 (exempt in the hands of the employees) and medical reimbursement over Rs. 15,000 (taxed as perquisite in the hands of the employee) is liable to FBT?If any sum is paid by the employer for expenditure actually incurred by the employee for medical treatment in an unapproved hospital and it exceeds Rs. 15,000 during…

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Excerpt: When a company is providing the Guest House Facility to its employees, rent of which is paid by the company. In this case do the company needs to pay FBT on Guest House Rent OR it will be taxable as Rent Free Accommodation in the hands of the Employee ? baljeet_kv@rediffmail.comAs per section 115WB(2)(k) , the maintenance cost of any guest house comes within purview of FBT @ 20% of such expenditure. CBDT vide Circular No 8 dt 29/8/2005 clarified on Guest House issues as follows:”Will expenditure on capital items (e.g., fridges, TVs) in a guesthouse be liable…

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Excerpt: Abhishek asked this question through Wonder Tax Tool Bar . Another reader, Ms Aparna replied through the same bar. I am giving my opinion on the subject.In my view, FBT is not applicable on keyman insurance premium.Section 115WB(3) of the I T Act defines fringe benefits. It excludes the perquisites in respect of which tax is paid or payable by the Employee. Section 115WB(3) is given below:”(3) For the purposes of sub-section (1), the privilege, service, facility or amenity does not include perquisites in respect of which tax is paid or payable by the employee 25c or any…

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Excerpt: Someone asked on A Yahoo Group Our client is an exporter of fish having turnover of more than 20 crores. He is having “Canteen Expenses” as one of the expenses. There is a canteen for workers in his factory. Is this expense liable to Fringe Benefit Tax. He is also having “Uniform Expenses” as one of the expenses. Now, this uniform is provided to all the workers including gloves, cap, apron & dress as it is required to keep the quality of the exported product. Is this expense liable to Fringe Benefit Tax. He is also…