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
- 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