Q1 FBT TO BE TREATED AS ADVANCE TAX
The Central Board of Direct Taxes (CBDT) has put an end to the dilemma which all the tax payers were having about advance payment of Fringe Benefit Tax. Many companies and other tax payers had paid their 1st installment of FBT. In July 2009 Finance Budget, the decision to abolish Fringe Benefit Tax was passed with retrospective effect from 01 April 2009. Now with the Board's circular on Friday dt. 29/01/2010 the tax payer are having a sigh of relief.
The circular No. 2/2010, dated January 29,2010 states that :
During the current Financial Year 2009-10 some assessees have paid "advance tax in respect of fringe benefits" for Assessment Year 2010-11. In such cases the Board has decided that any installment of "advance tax paid in respect of fringe benefits" for A.Y. 2010-11 shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11. The assessee can adjust such sum against its advance tax obligation in respect of income for A.Y. 2010-11 or in case of loss etc claim such payment as refund as advance tax paid in A.Y. 2010-11.