Anomalies in fringe benefit tax will be removed: Chidambaram
04 March 2005New Delhi: Finance minister, P Chidambaram, yesterday said that the government had no intention to levy the proposed Fringe Benefit Tax (FBT) for any legitimate business expenses such as business communication, knowledge enhancement, and sales and marketing.
While addressing the trade and industry at the Federation of Indian Chambers of Commerce and Industry, the finance minister said that any anomaly on the 2005-06 budget proposal pertaining to the FBT would be addressed.
"There is no intention to tax legitimate business expenditure. I have asked my people to look at the entries to see if any unintended anomaly has crept in that needs to be addressed," Chidambaram emphasised.
"We must wait for the final shape of the Finance Bill to emerge. All the unintended anomalies that may have crept in while drafting the provisions in the budget will be removed. The final draft will reflect these changes when the rules will be framed," he said.