Fringe Benefits Tax.

The taxation of perquisites -- or fringe benefits -- 
provided by an employer to his employees, in addition to 
the cash salary or wages paid, is fringe benefit tax. 

Any benefits -- or perks -- that employees (current or 
past) get as a result of their employment are to be taxed, 
but in this case in the hands of the employer.

FBT EXPLAIN: Fringe Benefits Tax,

FBT MOSTLY MAINTAIN COMPANIES , BECAUSE REDUCE THE TAX.

FBT PROVIDED TO THE EMPLOYEES,

example: CONVENYANCE, TRAVELING EXPENSES ETC.,

FBT is an acronym for Fring Benefit Tax

This tax is calculated in all companies; if the ledgers 
like telephone/cell phone charges, travelling expenses, 
boarding & lodging expenses, Petrol expense to Car is taken 
into the calculation. 

for more details please visit to the following page: -

http://www.rediff.com/money/2005/mar/22spec.htm

The taxation of perquisites or fringe benefits provided by 
an employer to his employees, in addition to the cash 
salary or wages paid, is fringe benefit tax. 
Any benefits or perks that employees (current or past) get 
as a result of their employment are to be taxed, but in 
this case in the hands of the employer. 
This includes employee compensation other than the wages, 
tips, health insurance, life insurance and pension plans.

Fringe benefits as outlined in section 115WB of the Finance 
Bill, mean any privilege, service, facility or amenity 
directly or indirectly provided by an employer to his 
employees (including former employees) by reason of their 
employment.

They also include reimbursements, made by the employer 
either directly or indirectly to the employees for any 
purpose, contributions by the employer to an approved 
superannuation fund as well as any free or concessional 
tickets provided by the employer for private journeys 
undertaken by the employees or their family members.

FBT will be taxed[3] on- 
(a) entertainment; 
(b) festival celebrations; 
(c) gifts; 
(d) use of club facilities; 
(e) provision of hospitality of every kind to any person 
whether by way of food and beverage or in any other manner, 
excluding food or beverages provided to the employees in 
the office or factory; 
(f) maintenance of guest house; 
(g) conference; 
(h) employee welfare; 
(i) use of health club, sports and similar facilities; 
(j) sales promotion, including publicity; 
(k) conveyance, tour and travel, including foreign travel 
expenses; 
(l) hotel boarding and lodging; 
(m) repair, running and maintenance of motor cars; 
(n) repair, running and maintenance of aircraft; 
(o) consumption of fuel other than industrial fuel; 
(p) use of telephone; 
(q) scholarship to the children of the employees.

FBT means Fring Benifit Tax.Employer paid such Tax on 
Specific Expenditurs made for Employees.This tax on 
Expenditures and not on Income.

A fing benefit is a 'payment' to an employee, but in a 
different form to salary or wages.

A fing benefit is a benefit provided in respect of 
employment.

Example: A fring benefit may be provided when an employer,
        1. Allows an employee to use a work car for provate 
purpose.
        2. pays an employees GYM membership fee.
        3. Gives an employee a cheap loan.
        4. Provides entertainment by way of free tickets.