What is Fringe Benefit Tax, whats the need of it please explain in detail?
What is fringe benefit tax? rediff Business Desk | March 22, 2005 The imposition of fringe benefit tax that proposes to tax companies on perquisites provided to their employees by Finance Minister P Chidambaram in his recent Budget has sparked off a huge debate amongst corporate and tax circles. Fears have been aired that many an industry will be badly hit by the fringe benefit tax and act as a barrier to their growth and well being. So just what is fringe benefit tax? The taxation of perquisites — or fringe benefits — provided by an employer to his employees, in addition to the cash salary or wages paid, is fringe benefit tax. Any benefits — or perks — that employees (current or past) get as a result of their employment are to be taxed, but in this case in the hands of the employer. This includes employee compensation other than the wages, tips, health insurance, life insurance and pension plans. Fringe benefits as outlined in section 115WB of the Finance Bill, mean any privilege,
