I have a partnership firm and i have been told to pay FBT on Rs.8000 thats Rs.2800 odd.
But why on partnership firms? There are only 2 partners and why this FBT on travelling, telephopne & advertising?
Where all the money is used for business purposes only. The employees ont get anything form this
2007-03-14 05:20:32 · 4 answers · asked by ukmad 3 in Business & Finance ➔ Taxes ➔ India
Certainly.
FBT is on any thing enjoyed by an employee or owner or partner
you wait and see, these guys will tax everything including the oxygen that we breath. It will be called breath tax.
2007-03-14 05:43:31 · answer #1 · answered by surez 3 · 1⤊ 0⤋
Generally the fringe benefit tax is for benefits allowed to the employees of the firm. n case of a partnership firm if the partners are not drawing any salary, using their personal phones, using their personal vehicles for attending business and not debiting a single rupee in the books of the firm shall not be charged to FBT but it is very difficult to prove that out of telephone bill, travelling etc nothing relates to partners. Partners are treated as representative employees of the firm as they work on behalf of the firm, therefore they are treated as employees of the firm and accordingly FBT is chargeable on firms. But this is a good case to fight and I feel in long run you will win the case as the word employee has been used in the respective section of the FBT
2007-03-15 02:08:15 · answer #2 · answered by ssunderagarwal 4 · 1⤊ 0⤋
Fringe Benefit Tax is leviable on employer.
u/s 115W ,the definition of emploer includes FIRM.
however employer-employee relationship is a prerequisite for the levy of FBT.
hence if there is a firm in which rhere are no employees on rolls will not be liable to FBT.eg law firms having retainer relationship are not liable to FBT.
Expenditure on Advertisement of any form in any print media or electronic media or transport shall not be liable to FBT.
telephone expense (excluding leased telephone)is liable to FBT .
Travelling expense is liable to FBT subject to certain conditions.
2007-03-15 07:08:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Fringe benefit tax (FBT) is to be paid by the Employer.
and the Firms are also covered under the definition of Employer. so clearly Firms have to pay the FBT.
so pay and cry...
2007-03-15 00:42:02 · answer #4 · answered by naveen k 2 · 0⤊ 0⤋