labels: economy - general, governance
ICAI to issue guidance note on fringe tax news
Our Economy Bureau
31 May 2005

New Delhi: The Institute of Chartered Accountants of India (ICAI) has finalised a ''guidance note'' that requires corporates to disclose FBT as a separate line item in their financial statements. It is implied that FBT would have to be disclosed separately in both the quarterly as well as annual earnings disclosures of corporates.

According to ICAI officials, the FBT has to be shown as a line item that is separate from the current tax liability of the company as FBT is not a tax on the income of the company and therefore cannot form part of the current tax liability.

The officials have also clarified that FBT couldn''t be considered as part of employee cost as it was an additional tax and the liability to pay this tax was on the employer and not on the employee.

 


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ICAI to issue guidance note on fringe tax