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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