Corporates get breather on FBT payment

New Delhi, June 14 (UNI) The corporate world today got a breather with the government extending the last date of payment of first installment of Fringe Benefit Tax by three months for the April-June quarter of 2007-08.

The FBT payment by companies relating to transfer or allotment of specified security or sweat equity shares to their employees, which was payable by tomorrow, can now be made by September 15, also the last day of payment for the second installment of the second quarter of July-September.

While announcing the relief, Central Board of Direct Taxes (CBDT) said it is in the process of notifying the method for determining fair market value of shares alloted or transferred to employees.

Similarly, employers will also not be able to make payment of the first installment of advance tax in respect of FBT, which also becomes due tomorrow, for want of determination of fair market value of shares alloted or transferred to employees.

Payment of FBT by companies on allotment of shares to employees, either free of cost or at concessional rate, was introduced in the Finance Act of 2007 vide clause (d) of Sub-Section (1) Section 115 WB, an official statement said.

UNI