Date:09/08/2005 URL: http://www.thehindubusinessline.com/2005/08/09/stories/2005080901371900.htm

Back CII meet on fringe benefit tax in Hyderabad

Our Bureau

HYDERABAD: The Confederation of Indian Industry (CII) will organise an interactive session on `Fringe Benefit Tax' (FBT) here on Wednesday.

Mr J.L. Giridhar, Director-General of Income Tax, and Mr S. Gopalakrishna, Managing Partner of PricewaterhouseCoopers (PwC), would address the session.

In a press release here on Monday, the CII said the FBT, imposed on the employer on the value of benefits provided to employees, had caused concern and resentment among corporates.

"FBT, at 33.66 per cent, would adversely affect the competitiveness of the Indian corporate sector. In the era of severe competition, companies can hardly afford to be extravagant in providing fringe benefit," it said.

The Government did announce some modifications to the tax, following severe criticism. "But these could, at best, be described as a piecemeal. The exclusions are few," it said.