Pages From Fbt Brochure

HUMAN CAPITAL

Valuation of Fringe Benefits Value of Fringe Benefits (as a % of total expense)

Description of fringe benefits *

Any free or concessional tickets provided by the employer for private journeys undertaken by the employees or their family members;

100

*

Employer’s contributions to an approved Superannuation Fund;

100

Fringe benefits shall be deemed to have been provided by an employer if any expense is incurred or payment made for the following purposes A

Entertainment;

20

B

Provision of hospitality (excluding food or beverages provided in the office or factory to employees, and non-transferable paid vouchers encashable only at eating joints or outlets);

C

Conference (excluding participation fee but including cost of travel, conveyance, boarding & lodging in connection with such conference);

20

D

Sales promotion including publicity (other than six specific exclusions as provided);

20

E

Employees’ welfare (other than expenses for purposes of fulfilling statutory obligations or mitigating occupational hazards or providing first aid);

20

F

Conveyance, tour and travel including foreign travel expenses;

20 (5% for construction, pharma and computer software companies)

G

Use of hotel, boarding and lodging;

20 (5% for pharma and computer software companies)

H

Repair, running (including fuel), maintenance of motorcars and the amount of depreciation thereon;

20 (5% for transport companies)

I

Repair, running (including fuel), maintenance of aircrafts and the amount of depreciation thereon;

20 (NIL for airline companies)

J

Use of telephone (including mobile phone, and excluding expenditure on leased telephone lines);

20

K

Maintenance of any accommodation in the nature of guest house (excluding accommodation used for training purposes);

20

L

Festival celebrations;

50

M

Use of health club and similar facilities;

50

N

Use of any other club facilities;

50

O

Gifts; and

50

P

Scholarships

50

2

20 (5% for hotel industry)