TMI BlogInsertion of new Chapter XII-HX X X X Extracts X X X X X X X X Extracts X X X X ..... this Act referred to as fringe benefit tax) in respect of the fringe benefits provided or deemed to have been provided by an employer to his employees during the previous year at the rate of thirty per cent. on the value of such fringe benefits. (2) Notwithstanding that no income-tax is payable by an employer on his total income computed in accordance with the provisions of this Act, the tax on fringe benefits shall be payable by such employer. 115WB. Fringe benefits - (1) For the purposes of this Chapter, "fringe benefits" means any consideration for employment provided by way of - (a) any privilege, service facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees): (b) any free or concessional ticket provided by the employer for private journeys of his employees or their family members; and (c) any contribution by the employer to an approved superannuation fund for employees; (2) The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has, in the course of his business or profession (including any activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny statutory obligation or mitigate occupational hazards or provide first aid facilities in the hospital or dispensary run by the employer shall not be considered as expenditure for employees' welfare; (F) conveyance, tour and travel (including foreign travel); (G) use of hotel, boarding and lodging facilities; (H) repair, running (including fuel), maintenance of motorcars and the amount of depreciation thereon; (I) repair, running (including fuel) and maintenance of aircrafts and the amount of depreciation thereon; (J) use of telephone (including mobile phone) other than expenditure on leased telephone lines; (K) maintenance of any accommodation in the nature of guest house other than accommodation used for training purposes; (L) festival celebrations; (M) use of health club and similar facilities; (N) use of any other club facilities; (O) gifts; and (P) scholarships. (3) For the purposes of sub-section (1), the privilege, service, facility or amenity does not include perquisites in respect of which tax is paid or payable by the employee. 115WC. Value of fringe benefits - (1) For the purpose of this Chapter, the value of fringe benefits shall be the aggre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (H) of sub-section (2) of section 115WB shall be "five per cent." instead of "twenty per cent." referred to in clause (c) of sub-section (1) (f) in the case of an employer engaged in the business of carriage of passengers or goods by aircraft, the value of fringe benefits for the purposes referred to in clause (I) of sub-section (2) of section 115WB shall be taken as Nil. C-Procedure for filing of return in respect of fringe benefits, assessment and payment of tax in respect thereof 115WD. Return of fringe benefits - (1) Without prejudice to the provisions contained in section 139, every employer who during a previous year has paid or made provision for payment of fringe benefits to his employees, shall, on or before the due date, furnish or cause to be furnished a return of fringe benefits to the Assessing Officer in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, in respect of the previous year. Explanation:- In this sub-section, "due date" means, (a) where the employer is- (i) a company; or (ii) a person (other than a company) whose accounts are required to be audited under this Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee or no refund is due to him: Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made. (2) Where a return has been furnished under section 115WD, the Assessing Officer shall, if he considers it necessary or expedient to ensure that the assessee has not understated the value of fringe benefits or has not underpaid the tax in any manner, serve on the assessee a notice requiring him on a date to be specified therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return: Provided that no notice under this sub-section shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished. (3) On the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking in to account all relevant material which he has gathered, the Assessing Officer shall, by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other fringe benefits chargeable to tax which have escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, for the assessment year concerned (hereafter referred to as the relevant assessment year). Explanation:- For the purposes of this section, the following shall also be deemed to be cases where fringe benefits chargeable to tax has escaped assessment, namely: (a) where no return of fringe benefits has been furnished by the assessee; (b) where a return of fringe benefit has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the value of fringe benefit in the return; (c) where an assessment has been made, but the fringe benefits chargeable to tax have been under-assessed. 115WH. Issue of notice where fringe benefits have escaped assessment - (1) Before making the assessment or reassessment under section 115WG, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period as may be specified in the notice, a return of the fringe benefits in respect of which he is assessable under thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arter: Provided that the advance tax payable for the quarter ending on the 31st day of March of the financial year shall be payable on or before the 15th day of March of the said financial year. (3) Where an assessee, has failed to pay the advance tax for any quarter or where the advance tax paid by him is less than thirty per cent. of the value of fringe benefits paid or payable in that quarter, he shall be liable to pay simple interest at the rate of one per cent, on the amount by which the advance tax paid falls short of, thirty per cent. of the value of fringe benefits for any quarter, for every month or part of the month for which the shortfall continues. 115WK. Interest for default in furnishing return of fringe benefits - (1) Where the return of fringe benefits for any assessment year under sub-section (1) or sub-section (3) of section 115WD or in response to a notice under sub-section (2) of that section, is furnished after the due date, or is not furnished, the employer shall be liable to pay simple interest at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date, and, (a) whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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