Please let me know what all should be the ideal components of the pay package in view of the introduction of the FBT ?
From India, Agartala
From India, Agartala
Hi,
My Finance team says Gift Voucher and Food Coupons are to be taxed 30%!
Can someone clarify this please?
If it is 30% tax is your employer observing the tax or the employee needs to bear the tax?
Sonali
My Finance team says Gift Voucher and Food Coupons are to be taxed 30%!
Can someone clarify this please?
If it is 30% tax is your employer observing the tax or the employee needs to bear the tax?
Sonali
of what i have understood from my finance division, the company will have to bear the tax for the sodexo as we are giving it as a benefit for the employees.
The only thing that has been left out is medical reimbursement. So guess we will have to start working on our old style of straight package which had not flexi benefits.
If any one else does come across any other means around this FBT please do share this information with all of us here.
Regards,
kavi
From India, Bangalore
The only thing that has been left out is medical reimbursement. So guess we will have to start working on our old style of straight package which had not flexi benefits.
If any one else does come across any other means around this FBT please do share this information with all of us here.
Regards,
kavi
From India, Bangalore
hey how has the Fringe Benefit Tax finally affected HR policies of cos regarding Pay packages? Does the cash in hand for the employee increase? How are HR depts going about this?
From India, New Delhi
From India, New Delhi
to the best of my knowledge SodexHo Passes are cleared by the Finance ministry and will not be considered frienge as it is considered as a food pass given in lieu or canteen facilities.
Off the record, a known person workin for sodexho has informed me that it cost SodexHo approx 5 Crores to clear themselves from FBT as it had ruined their business totally. Chidambaram is a richer man by a few couple crores for sure ;)
Cheers,
~MAVERICK~
From India, Pune
Off the record, a known person workin for sodexho has informed me that it cost SodexHo approx 5 Crores to clear themselves from FBT as it had ruined their business totally. Chidambaram is a richer man by a few couple crores for sure ;)
Cheers,
~MAVERICK~
From India, Pune
Hey Freinds:
The best thing I would suggest on part of flexi pack that is included in fringe benefits is to deduct the tax on it before paying. ;-) I know it sounds funny but why should the company offer its employees the so called benefits and also pay tax on it?
Shradha
The best thing I would suggest on part of flexi pack that is included in fringe benefits is to deduct the tax on it before paying. ;-) I know it sounds funny but why should the company offer its employees the so called benefits and also pay tax on it?
Shradha
The major impact of FBT is quite clear....
1. If the company keeps of giving benefits (computer rent, company owned chauffer / car etc) the company will have to pay another 30% over and above the actual cost as Tax..
2. If the company merges the same with the salary figures (stops giving benefits and increases the salary) the employee has to pay Income Tax on the same...
Result : Government is richer / while we are poorer.....
The Fact is most of the companies are now cutting of Fringe Benefits and are passing on cash to the employees in terms of higher salary.... (Our company has stopped giving computer rental and has merged the amount with salary)
So employees beware, you will have to pay additional Income Tax...
Ajmal Mirza
From India, Ahmadabad
351. If the company keeps of giving benefits (computer rent, company owned chauffer / car etc) the company will have to pay another 30% over and above the actual cost as Tax..
2. If the company merges the same with the salary figures (stops giving benefits and increases the salary) the employee has to pay Income Tax on the same...
Result : Government is richer / while we are poorer.....
The Fact is most of the companies are now cutting of Fringe Benefits and are passing on cash to the employees in terms of higher salary.... (Our company has stopped giving computer rental and has merged the amount with salary)
So employees beware, you will have to pay additional Income Tax...
Ajmal Mirza
From India, Ahmadabad
I think what you have said seems to be the best practise, i.e to cut the tax before paying, which seems to working out best for both of us (employee and employer). We are also currently following the same system :!: would like to hear from fraternity members what their take is on this whole issue.
cheers
Kavi
From India, Bangalore
cheers
Kavi
From India, Bangalore
Hi All,
On the FBT.
Sodexho Meal voucher is out of FBT
Sodexho Gift voucher is still remains under FBT.
I have been talking to my friends in IT companies and the the conclusion is most of the companies are doing away with flexibile components.
But, I have question - can we increase the Sodexho meal voucher limit ?
Regards
Anu
From India, Bangalore
On the FBT.
Sodexho Meal voucher is out of FBT
Sodexho Gift voucher is still remains under FBT.
I have been talking to my friends in IT companies and the the conclusion is most of the companies are doing away with flexibile components.
But, I have question - can we increase the Sodexho meal voucher limit ?
Regards
Anu
From India, Bangalore
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