Date:01/09/2005 URL: http://www.thehindubusinessline.com/2005/09/01/stories/2005090102990300.htm

Back FICCI urges rethink on some aspects of FBT

Our Bureau

New Delhi , Aug. 31

WHILE welcoming the Finance Ministry's explanatory notes on the Fringe Benefit Tax (FBT), the Federation of Indian Chambers of Commerce and Industry (FICCI) also expressed concern over some issues, includingthe move to impose FBT on dealer conferences.

"This would adversely affect a large number of companies, particularly FMCG, Pharma, IT, etc. Also, gifts to customers are intended for sales promotion and hence it seems unreasonable to classify it as gift," it said.

The Chamber also pointed out that FBT rules stipulated that the actual contribution from the employer towards an approved superannuation fund for employees would fall within the ambit of FBT.

FICCI urged the Government to keep superannuation funds outside the purview of the FBT net.