FBT rolled back a bit

THE GOVERNMENT has made a half-baked attempt to rationalise fringe benefit tax ? a long-pending demand on the part of industry.Among the concessions: the FBT rate on tour and travel expenses has been reduced from 20 to 5 per cent.

THE GOVERNMENT has made a half-baked attempt to rationalise fringe benefit tax — a long-pending demand on the part of industry.

HT Image

Among the concessions: the FBT rate on tour and travel expenses has been reduced from 20 to 5 per cent. The value of expenses on account of 'hospitality' and 'use of hotel boarding and lodging facilities' has also been reduced from 20 to 5 per cent (only for airline companies and shipping industry).

But some key areas like sales promotion, maintenance of any accommodation in the nature of a guest house and use of telephone remain within the FBT's ambit.