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How to treat FBT in Tally 9

>> February 5, 2009

Accounting treatment of FBT is very simple in tally 9 's automatic system of applying and selection of different expenses relating to free employee's facilities . FBT means fringe benefit tax under New FBT of India Law 2005 . FBT is tax liable to companies who provide free facilities to their employees . If any company gave any payment which comes under FBT , then that company will pay FBT to Central Govt. Now question Arises how to calculate

  1. Leviable on Employer.

  2. Leviable on Fringe benefits provided or deemed to have
    been provided to employees @ 30% on value of fringe
  3. Fringe Benefits divided in two categories
    – Fringe Benefits directly provided to employees
    consisting of benefit, amenity, facility, free/concessional
    tickets & contribution to approved superannuation fund
    section 115WB(1).
    – Deemed fringe benefits to employees on certain
    expenditure incurred by employer as specified in
    section 115WB(2).

  4. and how to treat it in Tally 9 ?
It is very easy to calculate , it is just some percentage on % expenses for employees . But do not worry , tally will automatically calculate if you pick proper steps in tally 9 .
First of activate FBT in Feature F11's statutory Features .

And when you create ledger of any expenses which comes under FBT , then yes for providing the information of FBT in ledger creation of expenses .

I have taken the example of employees welfare expenses . These are the indirect expenses and its Fringe benefit is calculate automatically by tally

on Rs. 50000 our company pay for employee's welfare and our accountant pass the voucher entry for payment in single entry mode . After this you can find what is the value of Fringe benefit and what is amount of Fringe benefit tax with following way in tally 9

Display → Statutory reports → FBT reports → FBT computation → Fringe benefit and then click → Look Fringe benefit tax and note in note book for passing the voucher entry of payment of this Fringe benefit Tax to Govt.

Tally Calculate Fringe benefit on Rs. 50000 at 20% under govt. rules = Rs. 10000

and the Tally calculate FBT on Rs. 10000 with 30% rate = 3000 and 10% surcharge = Rs. 300 and education cess = Rs. 66 = Total tax payable = Rs. 3366 .

After this pass the voucher entry of payment of Such tax in Payment Voucher .

For this create two ledger one is bank account under bank account and other is FBT under duties and taxes and open Accounting Voucher and in payment voucher you can pass voucher entry of payment of FBT and accept it .

After this when you see statutory report , you will find payment of you FBT . For this please activate detail of FBT in Configuration .

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Anonymous,  June 4, 2012 at 8:37 AM  

it has lots of good info.

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