Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: articles on VAT and GST in India :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARDS :: form 3cd :: cpt :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment
 
 
News Headlines »
 Notification regarding extension of last date w.r.t submission of closing stock by dealer.
 Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
 Central Goods and Services Tax (CGST) Rules,2017 (As on 15.11.2017)
  101st Constitution Amendment Act, 2016
 Pr. Commissioner Of Income Tax-6 Vs. Mccain Foods India Pvt. Ltd.
 Section 10 of the Income-tax Act, 1961
 Income tax returns filing: No tax on gift received from relatives in form of cash
 Income tax returns (ITR): Here is why you need to pay higher tax on other incomes
 GST Update On Issuance Of Debit Notes And Credit Notes
 How Mutual Fund Investments Can Help Save Income Tax
 Income tax returns (ITR) filing: Why small service providers need to get this benefit

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