This is the first blog I m doing by a mobile phone. Feeling like the 21st century boom is a mobile phone.
If u have a smart phone then u must use it till the fullest extent. Sometimes I think that if u loose a smart phone then your life is lost for few days, again u buy a smart phone and the life becomes normal.
Hope that we must have the best tracker in the smart phones to track your life. :p
Thanks lord. :)
| For the Assessment Year 2007-08 |
The following amendments will be in effect from 1 April 2008:
The undermentioned expenses will be excluded from Sales Promotion & Publicity:
The following amendments is in effect from 1 April 2007:
|
| Taxable | Exempted |
| Use of telephones, including mobile phones, the base for valuation will be 20% | Expenses on advertising |
| The base for valuation of FBT will be 20% for expenses on entertainment, hospitality, sales promotion and publicity, employee welfare, conveyance, tour and travel (including foreign travel) and use of hotels. | Expenses on leased lines will. |
| 50% for expenses on festival celebrations, use of clubs, scholarships and so on. | Charitable institutions, trusts and funds. |
| For superannuation funds, FBT will be levied on the entire contribution made by the employer for employees. | Individuals and Hindu Undivided Families (HUFs) engaged in a business or profession. |
| Tax on foreign tour and travel. Infosys, for instance, spend about 4% of its revenues on foreign travel. Phone bills account for close to 1%, another expense attracting the fringe benefit tax. | Conference expenses, only the fee for participation |
| Repairs and maintenance of cars have also been brought under the purview of fringe benefit tax now. The only saving grace is that only 5% of maintenance costs for transport companies will now be subject to FBT. | Employee welfare expense, only the expenses incurred to fulfil any statutory obligation or to mitigate hazards or to provide first aid facility that too only in a hospital or dispensary run by the employer. |
| Any privilege, service or amenity provided directly or indirectly by an employer by way of reimbursement or otherwise to employees will attract FBT, which is to be paid by employers. | Guest houses for training. |
| Fifty per cent of expenses on club facilities. | Expenses incurred due to sales promotions |
| Expenses borne by companies on foreign travel of their employees will be under the purview of FBT. FBT on travel expenses has been cut to 5%. | Medical expenses. |
| Any free or concessional ticket provided by the employer for private journeys of employees or their family members and any contribution to an approved superannuation fund for employees will come under the purview of FBT. | Companies that are loss making. |
| Expenditure on employees welfare will attract FBT, but not the expenditure incurred or payment made to fulfil any statutory obligation or mitigate occupational hazard or provide first aid facilities in hospital or dispensary run by employers. | |
| Other expenditures that will come under FBT are conveyance, tour and travel including foreign travel, use of hotel, boarding and lodging facilities, repair, running, maintenance of motor cars and aircraft and the amount depreciation on them. | |
| Maintenance of any accommodation like guest house except those used for training purposes, festival celebrations, use of health club and similar facilities, use of any other club facilities, gifts and scholarships will come under FBT. |
| Earlier | Now | |
| Use of telephone (other than leased lines) | 10% | 20% |
| Entertainment | 50% | 20% |
| Scholarship to children of employees | Actual | 50% |
| Hospitality | 50% | 20% |
| Maintenance of accommodation like guest houses | 50% | 20% |
| Conference | 50% | 20% |
| Employee welfare | 50% | 20% |
| Sales promotion, including publicity | 50% | 20% |
| Festival celebration | 50% | 50% |
| Gifts | 50% | 50% |
| Use of club facilities | 50% | 50% |
| Use of health clubs, sports and similar facilities | 50% | 50% |
| Conveyance, tour and travel, including foreign travel | 20% | 20% |
| Hotel, boarding and lodging | 20% | 20% |
| Repair, running (including fuel), maintenance of motorcars and depreciation thereon | 20% | 20% |
| Repair, running (including fuel), maintenance of aircraft and depreciation thereon | 20% | 20% |
