Fringe levies

TAX CHAT

yment, a different rate has been prescribed for determining the value of the fringe benefit included in it apart from the specific items. Broadly tax is payable at the rate of 30 per cent of the value of the fringe benefit. In addition, there is a surcharge of 10 per cent of the tax and education cess of 3 per cent. That is a total of 33.99 per cent on companies.  Employee: Any other points to be noted?  Advisor: There are concessional rates for some tax payers. In respect of the various expenses listed in Section 115WB(2), it has been laid down that the value of fringe benefit would be 20 per cent or 50 per cent, as the case may be, of the expense incurred. However, for certain industries like construction, computer software and hotel, the fringe benefit to be considered is only 5 per cent.  This is one tax every employer loves to hate because its complexity totally unconnected with the quantum of its incidence.  The writer is a chartered accountant.