Am getting the budgets in line for our annual Christmas/New Year gifting, and was wondering if I can get around the fringe benefits taxation bit. Any ideas?
2nd December 2008 From India, Bangalore
Not if your organization is a monster. For a corporate with around 3000 employees.. with a manager for every 50, you have at least 60 managers there...not counting higher ups.
9th December 2008 From India, Bangalore
Hi Jhanvik,
If you are giving "gift" to employees for X'mas the FBT rate will be 50% of total expenses *33.99%. ie nearly 17% tax on the total expenses. But there is a possibility of avoiding this tax. As per the FBT rules there is no FBT for advertising other than some old kind of advertising like writting in the walls etc.,and while considering this fact there is a loophole for you. I saw the other posts regarding the Ipod and if you are going to gift them an Ipod then do one thing embed the name, address and logo of your company in the IPod ( this is for bringing it under the preview of advertisement as per the definition given by them in the FBT rules for advertising)so that you can claim it under the advertising expenses and no need to pay the FBT. But if you dont put the name, logo etc it will come under FBT for gift. But also compare with the cost of putting the Logo and the FBT that has to be paid if no logo is embeded and Ipod is giving as a gift.
18th December 2008 From India, Kottayam
Thank you Leon for that information. Even our company is planing 2 go wit ipod as gift for this christmas .Business point of view i think tax benifit on this corporate gift is worth showing on the books for the final accounts.
19th December 2008 From India, Bangalore
Thanks for bringing forward the idea of gifting iPods. Its sleek, classy and is definitely the latest buzz going on. It can be personalized too, may be the company logo will fit in best.
I forwarded the same idea to my company's HR and she appreciated it too. Even gifting a small 1GB iPod shuffle would be enough to boost the motivational factor among employees.
30th December 2008 From India, Bangalore
Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™