Will a partnership firm exempt from maintaining books of accounts u/s 44AD liable to FBT?

Question

If a firm is exempt from maintainence of books of accounts, on what basis the FBT should be calculated?

Answer 1

Fringe benefit tax is applicable to all the employers. The definition of the employer is stated below,

Section 115W provides the definition:

(a) employer means,

(i) a company;

(ii) a firm;

(iii) an association of persons or a body of individuals, whether incorporated or not;

(iv) a local authority; and

(v) every artificial juridical person, not falling within any of the preceding sub-clauses:

Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter.

It is no where mentioned in the rules regarding the scope of the Fringe Benefit Act, that a firm which is exempt from maintaining the books of accounts u/s 44AD is not liable to FBT.

FBT makes all the employers liable for providing the amenities to its employees, as stated u/s 115WB of the Income Tax Act.

Regards,
Rb

Answer 2

Nope Sir,
Only private limited companies applicable for FBT,

Partnership firms, Propretiroy concren not applicable for FBT