When an employer is extending the benefits to the employees in terms of perquisites or fringe benefits they are treated in different ways in different countries. These benefits are either taxed in the hands of employee or the value of such benefits is subject to a fringe benefit tax in the hands of an employer.

• Fringe Benefit Tax is payable by " an employer "
• Fringe Benefit Tax is payable w.e.f Financial Year 2005 - 06
• Fringe Benefit Tax is payable in addition to the income tax charged under the IT Act
• Fringe Benefit Tax is payable in respect of the fringe benefits provided or deemed to have been provided by the employer to his employees during the previous year.
• The Tax shall be levied @ 30% on the value of such fringe benefits.

• Entertainment Expenses
• Hospitality of every kinds
• Conferences
• Sale promotions including publicity
• Employees Welfare
• Use of hotels, boarding and lodgings
• Repair, Running, Maintenance of Motor Cars and Amount of Depreciation
• Telephone Expenses
• Accommodations to Guests and associates
• Festival Purposes
• Health Clubs and other recreations facilities
• Gifts
• Scholarships