Fringe Benefit

The imposition of hit good evaluate that proposes to tax companies on perquisites provided to their employees by finance Minister P Chidambaram [ Images ] in his contemporary Budget has sparked off a huge debate amongst incorporate and tax circles. Fears have been aired that m either an perseverance provide be badly hit by the thrill eudaemonia tax and act as a obstruction to their maturement and sanitary being. So just what is grace realize 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, that in this case in the hands of the employer. This overwhelms employee compensation opposite than the wages, tips, wellness insurance, life insurance and pension plans. Fringe benefits as sketch in section 115WB of the Finance Bill, mea n all(prenominal) 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 any 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 coverage What are these fringe benefits that will be taxed? As per the Finance Bill, fringe benefits shall ! be deemed to have 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) determination 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: BestEssayCheap.com

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