Implementation Of Fringe benefits Tax in Tally ERP

Implementation Of Fringe benefits Tax in Tally ERP : Fringe benefits are any amities, facility and service provided by an employer to its employee are known as fringe benefits tax it even includes former employee as reason of there service cater to organization earlier. It even include reimbursement made by an employer to its employee either directly or indirectly.

  • Any free or concessional tickets provided by the employer for private journeys undertaken by the employees or their family members
  •  Contributions by the employer to an approved superannuation fund
  • Any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer free of cost or at concessional rate to his employees (including former employee   or employees). [This clause is inserted by Finance Act, 2007 with effect from 01/04/2008].

How to implement FBT in Tally ERP 9

Suppose M/s. Pathak Industries (P) Ltd. is a domestic company, which manufactures cement and other waterproofing components.


Step 2: Press F11:

  • Statutory & Taxation Set Enable Fringe Benefit Tax (FBT) to Yes
  • Enable Set/Alter FBT Details to Yes and press Enter
  • fbt Enter Company FBT Assessee Details
  • Enter PAN / Income Tax Number details of the company
  • Select the Assessee Type as Firms/ Domestic Companies


Ledger Under Inventory value are affected Is FBT Applicable Default FBT category
Conveyance A/c Indirect expense No Yes Conveyance


FBT Under Types of Duties and Taxes Inventory value are affected
FBT Payable Duties and taxes FBT NO
Ledger `Under Effective date of reconciliation Opening Balance
Bank Duties and taxes 1-4-2015 100000

On 11th April, 2015, M/s. Pathak Industries reimbursed Rs. 5,400/- to Mr. Alok (Sr.Manager – Sales) towards Conveyance expenses bill no 1456


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