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Tamil Nadu
Concern over fringe benefit tax impact on small business
Our Correspondent
Madurai
,
Jan. 17
The Tamilnadu Chamber of Commerce and Industry has expressed serious concern over the impact of the 30 per cent Fringe Benefit Tax levied on small businesses and the consequent jump in the cost of doing business.
In a memorandum submitted to the Union Finance Minister, Mr P. Chidambaram, in New Delhi recently, the chamber pointed out that the levy was essentially an expenditure tax covering as many as 18 categories of expenses. The tax is likely to prove counter-productive as the paperwork involved is huge, increasing the workload for both the employer and the income-tax department as it required two assessments.
The chamber has sought either complete withdrawal of the tax or exemption for assesses of less than Rs 10 crore turnover.
The other demands included removal of personal income tax, restoration of provisions under Rule 6 DD(j) pertaining to disallowance by the tax authorities, raising the ceiling for applicability of Section 44AB for tax audit, setting up a Bench of the Income Tax Tribunal at Madurai for the southern districts, exemption for consignors and consignees from service tax and lowering of service tax.
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