The document discusses the scope and financial implications of Fringe Benefit Tax (FBT) in India. FBT was introduced in 2005 and is payable by employers at a tax rate of 30% plus surcharges and cess on the value of fringe benefits provided to employees. Common fringe benefits include gifts, travel, use of vehicles or equipment, entertainment, and health/welfare benefits. The document provides definitions and examples of various fringe benefit categories and exclusions for valuation and tax treatment.

4. Valuation of Fringe Benefits 100 Any privilege, service facility provided directly or indirectly, provided by the employee either through reimbursement or otherwise. ( to his employees including former employees ) 20 Employees’ welfare 20 Sales Promotion including publicity 20 Conference 20 Provision of hospitality 20 Entertainment; Fringe benefits shall be deemed to have been provided by an employer if any expense is incurred or payment made for the following purposes: 100 Employer’s contribution to an approved Superannuation Fund; 100 Any free or concessional tickets provided by the employer for private journeys undertaken by the employees or their family members; (excluding that included in LTA/LTC) Value (in %) Description of Fringe Benefit s

5. Valuation of Fringe Benefits (contd..) 50 Scholarships 5 Tour & Travel including (Foreign Travel) 50 Gifts; and 50 Use of any other club facilities; 50 Use of health club and similar facilities; 50 Festival Celebrations; 20 Maintenance of any accommodation in the nature of guest house 20 Use of Telephone (including mobile phone, and other than expenditure on leased telephone lines; 20 Repair, running (including fuel), maintenance of motor cars and the amount of depreciation thereon; 20 Use of hotel, boarding and lodging; 20 Conveyance Value (in %) Description of Fringe Benefit s