Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: VAT Audit :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: TDS :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: cpt :: form 3cd :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India
 
 
News Headlines »
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax

FBT collections decrease by 4%
September, 10th 2007

Personal and corporate income tax collections continue to look great this year too. But in stark contrast, fringe benefit tax collections are way off the mark.

The negative trend first noticed a month ago is now obvious. Taxmen themselves say this probably reflects that employers are passing on the FBT liability to the employees.

While personal and corporate tax collections between April-August this year have surged by 42 per cent. Fringe benefit tax collections have decreased by almost 4 per cent in the same period.

This year during the April-August period collections are down to Rs 1,015 crore, but last year the number stood at Rs 1,088 crore. The CBDT has targeted FBT collection of Rs 6,800 crore by March end this fiscal.

Tax consultants say even in the current financial an increasing number of corporates are re-engineering their employee pay packages to minimise FBT obligations.

For instance benefits like medical, conveyance, leave travel allowance, entertainment and many more are being slowly moved from the FBT categorization to allowances.

Subject to normal TDS

These allowances are then subject to normal TDS or tax deducted at source, which the employee pays in the shape of income tax. This effectively allows corporates to shift their FBT liability on to the employee without change in the incidence or rate of taxation.

Taxmen also say that this could explain why personal income tax collections are booming but FBT collections are not in line.

Going by the trend so far, the real test will come in the shape of FBT on ESOPS, guidelines for which are expected any day.

In amendments to the budget the Finance Minister has made it possible for corporates to let employees pay the Fringe benefit tax on ESOPS.

While practically the feasibility of this provision could be questioned in the coming days, this will definitely encourage more and more companies to shift their FBT obligation to employees.

For the Finance Minister though it is the moolah that matters. With the current buoyancy in taxes government is all set to surpass the tax collection targets yet again.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions