Fringe Benefit Tax
GUJARAT NATIONAL LAW UNIVERSITY TITLE OF THE PROJECT FRINGE BENEFIT TAX SUBMITTED BY PRIYANK JAGAWANSHI 08B088 priyankjagawanshi@gmail.com 2008-2013 VII SEMISTER
SUBMITTED TO Mr. CHAMARTI RAMESH KUMAR ASSISTANT PROFESSOR OF LAW
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CONTENTS
ACKNOWLEDGEMENT
3
ABSTRACT
4
INTRODUCTION
5
FRINGE BENEFITS TAX (FBT)
6
LEGISLATION AND STATUTORY REGULATIONS
8
EXEMPTIONS IN FRINGE BENEFITS TAX
10
ABOLITION OF FBT – REASONS
11
IMPACT OF ABOLITION OF FRINGE BENEFITS TAX
14
CONCLUSION
16
REFERENCES
17
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ACKNOWLEDGEMENT
I would like to take this opportunity to extend a word of my gratitude to my esteemed Tax Law faculty Prof. Ch. Ramesh, who had been a constant source of inspiration for me in the pursuance of this project. Sir has been gracious enough to guide me on the right path which has enabled me to strengthen my efforts. The project has been made with utmost care & with utmost finesse to see that the information mentioned is to the best of the accuracy and correctness. Despite of all the support received from all quarters, I alone am responsible for the errors that remain.
3|P a ge
ABSTRACT
This paper will be dealt with concept of fringe Benefits tax (FBT) which was introduced n the year of 2005 by Finance Bill 2005 and also abolished in the year of 2009 by the finance bill 2009. Various countries have this mechanism. In India it was also applied but it effects negatively. Employers were the main subject who faced various problems because of its complexities. It abolition also gives great impact as removal of double taxation and burden form employer. It brought various changes and other policies were also implemented. Government revenue also got affected by this system. It was introduced in Income Tax Act 1961 under sections 115W. Reasons for its abolition also discussed in this paper.
4|P a ge
INTRODUCTION
In the taxation concept of Fringe Benefits Played an
SUBMITTED TO Mr. CHAMARTI RAMESH KUMAR ASSISTANT PROFESSOR OF LAW
1|P a ge
CONTENTS
ACKNOWLEDGEMENT
3
ABSTRACT
4
INTRODUCTION
5
FRINGE BENEFITS TAX (FBT)
6
LEGISLATION AND STATUTORY REGULATIONS
8
EXEMPTIONS IN FRINGE BENEFITS TAX
10
ABOLITION OF FBT – REASONS
11
IMPACT OF ABOLITION OF FRINGE BENEFITS TAX
14
CONCLUSION
16
REFERENCES
17
2|P a ge
ACKNOWLEDGEMENT
I would like to take this opportunity to extend a word of my gratitude to my esteemed Tax Law faculty Prof. Ch. Ramesh, who had been a constant source of inspiration for me in the pursuance of this project. Sir has been gracious enough to guide me on the right path which has enabled me to strengthen my efforts. The project has been made with utmost care & with utmost finesse to see that the information mentioned is to the best of the accuracy and correctness. Despite of all the support received from all quarters, I alone am responsible for the errors that remain.
3|P a ge
ABSTRACT
This paper will be dealt with concept of fringe Benefits tax (FBT) which was introduced n the year of 2005 by Finance Bill 2005 and also abolished in the year of 2009 by the finance bill 2009. Various countries have this mechanism. In India it was also applied but it effects negatively. Employers were the main subject who faced various problems because of its complexities. It abolition also gives great impact as removal of double taxation and burden form employer. It brought various changes and other policies were also implemented. Government revenue also got affected by this system. It was introduced in Income Tax Act 1961 under sections 115W. Reasons for its abolition also discussed in this paper.
4|P a ge
INTRODUCTION
In the taxation concept of Fringe Benefits Played an
References: ARTICLE REFERRED – 1. William L. Cary, 68 Harv. L. Rev. 745, ―Pressure Groups and The Revenue Code: In Honor of The Departing Uniformity of the tax Laws‖. 2. Ved Jain, Central Council Member of the Institute, “Fringe Benefits Tax – Concepts & compliance.‖ BOOKS AND BARE ACTS REFERRED – 1. Taxmann, Income tax Act, as Amended by Finance Act 2010, Taxmann’s Publication, New Delhi, 54th Edition 2010,pp. 1.595 – 1.609. 2. Sampath Iyengar. A.C, ―The Law of Income Tax‖ Vol. 1,9th Edition, New Delhi, Bharat Law House, 1996 3. Singhania Vinod, ―Students Guide to Income Tax‖, 42nd Edition, Taxman, 2010. WEBSITES REFERRED – 1. http://en.wikipedia.org/wiki/Fringe_Benefits_Tax_(India)(last accessed on 21st September 2011 at 12 :44 AM ) 2. ―What is fringe benefit tax?‖, Rediff Business Desk, March 22, 2005, http://www.rediff.com/money/2005/mar/22spec.htm,(as accessed on 15thSeptember 2011 at 05:55 PM). 3. ―Fringe Benefit-The Benefit in Kind‖, 17 | P a g e http://www.citehr.com/46904-fringe-benefit-benefitkind.html(as accessed on 15th September 2011 at 5:40 PM) 4. “Fringe Benefit Tax—Concept & Compliance‖, Ved Jain, http://www.icai.org/resource_file/10691june05p16971704.pdf, (as accessed on 16th September 2011 at 4:35 PM) 5. http://articles.economictimes.indiatimes.com/2006-0105/news/27449696_1_fbt-business-expenditures-cent-andeconomy, CII demands for removal of FBT. (last accessed on 20th September 2011 at 2.45 AM) 6. http://articles.economictimes.indiatimes.com/200509/05/news/27476122_1_fbt-nasscom-kiran-karnik, Nasscom unhappy with FBT.( (Last accessed on 20th September 2011 at 2.55 AM)) 7. ―Abolish fringe benefit tax, simplify procedure: MCCIA‖, Nikhil Deshmukh http://articles.timesofindia.indiatimes.com/2009-06 17/pune/28168081_1_fringe-benefit-tax-tax-collectionincome, (as accessed on 21th September 2011 at 12:13 AM) 8. ―FBT gone? Your take-home pay may be less now‖, (as accessed on 20th September 2011 at 9:45 PM) http://business.rediff.com/report/2009/jul/07/budget09-yourtake-home-pay-may-be-less-now.htm, 9. “The Winners and Losers in India’s Abolition of Fringe Benefits Tax Rules‖ by Alok Agrawal, KPMG, Bangalore http://us.kpmg.com/microsite/tax/ies/tea/winter2009/article1. asp) (last accessed on 22nd September 2011 at 3.35AM) 18 | P a g e 19 | P a g e