Regarding FBT, we wont't like at present, because it will create the following
(1) FIRST it will create unemployment (2) Employer will cut Benefits to employee (3) employer will reduce the man power (4) employer will decrease the increment in every year (5) wheter our govt lot in finance (6) finance dept has to think about Lower andmiddle class people (7) Please don't compare FBT withother countries, becuase they are DEVELOPED COUNTRY, their earning & benefits are more. (8) except software co,most of the company employees earning less than 4000/- (9) pls double think before impleting tax , already our persons suffered lot of tax,(service, cess, FBT, cash tax) (10) it will incrase poverty.
being a director of mid size company i would say this will kill the business which are currently facing global giants competition. Does this an attempt to help global giants?
Say for example it covers all employee benifit under it. So we have to pay tax on PF credited for employee welfare and that is rather shocking as no company would like to go for this arrangement where company contribute equivelent to employee and then pay tax of 30% + 10 + .2% = 33.66%
This is one example, as of now we have decided not to cut any PF of employee just add it to thier salaries.
I feel Hon'ble FM could 've increased the corporate tax rates, instead of reducing it on one hand and including FBT and other documentary inconviniences related to it on the other hand, its basically a tax on expenditure with some genuine business expenses also getting under the net.
I refer to one feed back saying loss making co should not be taxed mind u. U can avoid FBT tax if you dont pay any perquisit to your employee and pay the salary directly with this your company will not be liable for FBT.
I think this FBT is really a real tax on individual who are earning more in kind rather then cash and save tax income. From this i belive more of the top rank company people will be brought into net and i think this FBT is a really good though that govt has done this time to catch un accounted corporate perks. I do know people put all personal expenses into company account because he dont want to take salary instead as he has to pay tax. I do agreed that australian method of taxation would really bring top bracket of people into the tax fold and this will really benifit lots of general population.
Hats off to Finance Minister who brought this rule which was required since long time.
Are all the telephone bills used by the call centres entirely and purely for the busniess are tax or is it continued to allowed as 100% deductions as business expense.?
I don't agree with the rationale to tax the companies on account of fringe benefits. It means even loss making companies will have to pay tax. Ok u tax the companies who can afford to pay, like infy, wipro. There u are giving exemptions. Why FM reduced the corporate tax and then brought in FBT is not understandable. No body asked for it. It would have been fair to tax those who have earnings. As it is only IT Inc is earning now a days and not other old economy Incs.
RE:Who will take SodexHo coupons now???
by G.Shrinivas on May 10, 2005 12:52 PM Permalink
I would not be surprised if SodexHo and our corporates come out with some kind of loop hole stating that this coupon is to be used only inside office premises and yet we keep using it all over the town ..
