Industry & Economy
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Income Tax
AP HC order on fringe benefit tax rate
Our Bureau
Hyderabad
,
Aug 30
THE Andhra Pradesh High Court has directed the Income-Tax Department to accept advance fringe benefit tax (FBT) at the five per cent rate and not at 20 per cent from publishers of a Telugu newspaper.
In an order given on Monday, a Division Bench asked the officials to collect FBT at the rate till further orders to be passed on the petition.
The petitioner, Aamoda Publications Private Ltd, moved the court contesting against the arbitrariness of the tax. They argued that some sections in the tax violated Article 14 and 19 (1) (g) of the constitution.
The value of the fringe benefits fixed for various categories of expenses varied for certain businesses. Business such as pharmaceuticals, software, construction, hotels, transport and aircraft had been given concession.
The petitioner, who printed and published the leading Telugu daily Andhra Jyoti and weekly Navya, contended that this was totally arbitrary, based on surmise and was highly discriminative.
For one, the value of fringe benefit for expenditure on conveyance, tour and travel for employers engaged in construction, manufacturer of pharmaceuticals and software was five per cent.
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