Date:12/12/2005 URL: http://www.thehindubusinessline.com/2005/12/12/stories/2005121202100500.htm

Back Chamber seeks withdrawal of FBT

Our Bureau

New Delhi , Dec. 11

THE Indo-American Chamber of Commerce (IACC) has called for the withdrawal of the Fringe Benefit Tax (FBT) at the earliest, stating that it has adversely impacted the competitiveness and the globalisation efforts of Indian companies.

In a statement issued here today, the IACC has said the Government at the outset should prove whether FBT is an income tax or an expenditure tax. The chamber is of the view that FBT does not have the characteristics of the income tax since the incidence of the tax is not on income but expenditure.