What is fringe benefit tax? What is FBT ?

Fringe Benefit Tax is tax paid by employer after giving any begefit to its employee. Suppose you are working in acompany and the company is giving you the benefit in travelling to your native place from the company location. This benefitwill be under Fringe Benefit Tax and employer have to pay FBT to goverment according to the financial periods rate of FBT.

The purpose for which employer will have to pay FBT.

(a) entertainment;

(b) festival celebrations;

(c) gifts;

(d) use of club facilities;

(e) provision of hospitality of every kind to any person whether by way of food and beverage or in any other manner, excluding food or beverages provided to the employees in the office or factory;

(f) maintenance of guest house;

(g) conference;

(h) employee welfare;

(i) use of health club, sports and similar facilities;

(j) sales promotion, including publicity;

(k) conveyance, tour and travel, including foreign travel expenses;

(l) hotel boarding and lodging;

(m) repair, running and maintenance of motor cars;

(n) repair, running and maintenance of aircraft;

(o) consumption of fuel other than industrial fuel;

(p) use of telephone;

(q) scholarship to the children of the employees.