Fringe Benefit

The imposition of hit good evaluate that proposes to tax companies on perquisites provided to their employees by pay Minister P Chidambaram [ Images ] in his late Budget has sparked off a huge debate amongst integrate and tax circles. Fears have been aired that m either an attention provide be badly hit by the eruption eudaemonia tax and act as a hindrance to their maturement and sanitary being. So just what is belt wellbeing tax? The taxation of perquisites -- or fringe benefits -- provided by an employer to his employees, in summing up 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, nevertheless in this case in the hands of the employer. This overwhelms employee compensation some other than the wages, tips, wellness insurance, life insurance and pension plans. Fringe benefits as sketch in section 115WB of the Finance Bill, mean w hatsoever privilege, service, expertness or amenity directly or indirectly provided by an employer to his employees (including former employees) by reason of their employment.

They also include reimbursements, make by the employer either directly or indirectly to the employees for whatever purpose, contributions by the employer to an approved superannuation fund as well as either free or concessional tickets provided by the employer for head-to-head journeys undertaken by the employees or their family members. * Budget 2005-06: Complete reportage What are these fringe benefits that will be taxed? As per the Finance Bill, fringe benefits shall be deemed to ha! ve been provided if the employer has incurred any expense or made any payment for the purposes of: * (a) entertainment; * (b) festival celebrations; * (c) gifts; * (d) lend oneself of club facilities; * (e) cookery 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;...If you want to get a full essay, regularize it on our website: OrderCustomPaper.com

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