Frienge Benefit Tax - FBT

1. Contribution made by employer to approved superannuation fund is exempted from FBT up to the limit of Rs.1 Lac per employee per year.
2. Expenditure towards 'Conveyance' attracts FBT @ 20% and expenditure towards 'Tour and Travel' attracts FBT @ 5%. This necessitates appropriate classification of expenses between conveyance and Tour Travel.
3. In case employer recovers some portion of the expenses from the employees the FBT will be applicable on the net amount of expenses.
4. When a common expenditure is shared by group companies, each company will be liable for FBT on its share of expenditure.
5. FBT is not applicable on the amount of LTA paid to the employees.
6. concessional ticket or sponsored tour of employee and family members attracts FBT.