Readers would be aware that the Finance Minister abolished the Fringe Benefit Tax (FBT) in the earlier budget. The Budget was presented in July 2009 and was enacted later in August. However, the abolition of FBT was with effect from 1st April, 2009.
This resulted in a situation whereby many corporate tax payers paid the first installment of FBT Advance tax in June 2009 before the Budget was presented. There was no clarity for such tax payers about the status of the advance tax paid. Tax payers were left wondering how their first installment of FBT advance tax would be dealt with by the Govt. and whether the same would be refunded to them or whether it would be adjusted against any other tax liability for the year.
The Central Board of Direct Taxes has finally cleared the confusion and has issued a press release on 29th January |