Busy

Fringe Benefit Tax

Implementation in BUSY

Fringe Benefit Tax

Fringe Benefit Tax is tax on perquisites or fringe benefits provided by an employer to his employees, in addition to the cash salary or wages paid. In other words, fringe benefit tax is a tax that is levied on the expenses of a business. The implementation of Fringe Benefit Tax (FBT) in BUSY is a simple three steps process. The steps are: 1. Configure FBT in BUSY 2. Enable FBT account-wise 3. View the Fringe Benefit Tax Report Let us discuss the steps in detail.

1. Configure FBT in BUSY

To configure FBT in BUSY, perform the following steps: Open the company you want to configure FBT for: Company Open Select your company Click the Administration Menu Configuration Features/Options Accounts Enable the option Fringe Benefit Tax Reporting by selecting the checkbox

Given here is a screenshot of Features/Options Window for configuring FBT in BUSY.

Click the Save button to save the configuration settings

BIPL

Implementation of FBT

Busy
2. Enable FBT account-wise
After FBT is configured in BUSY, you need to enable FBT account-wise. Let us understand with the help of an example. ABC & Co. has an expense account for Travel Expenses. They want to calculate FBT on the travel expenses. For this purpose, they have to enable FBT for the Travel Expenses account. To enable FBT for an account, perform the following steps: Click the Administration Menu Masters Account Add In the Account Master Add Window, enter the appropriate information in the boxes: Name: Travel Expenses Print Name: Expenses Group: Expenses (Indirect/Admns.) When you specify the group as Expenses, a FBT Details for account Travel Expenses Window appears within the Account Master Add Window. Given here is the screenshot of the Account Master Add Window.

Given here is the screenshot for the FBT Details for Account Travel Expenses Window.

BIPL

Implementation of FBT

Busy

Enter the information in the dialog box as given here: Specify Y in the checkbox for Enable FBT Reporting option. In the group box for Fringe Benefit Tax Details, specify the following details: FBT Calculation Amount % = 30 This amount specifies on what percentage of the expense should FBT be levied. For example, in the given scenario, on a travel expense of Rs. 100, FBT will be levied on 30% of 100 i.e. FBT will be levied on Rs. 30. FBT % = 20 This amount specifies the percentage of FBT to be levied. For example, in the given scenario, 20% FBT will be levied on Rs. 30 i.e. Rs. 6. Thus the FBT is Rs. 6. Surcharge % = 0 Cess % = 0 Click the OK button Click the Save button to save the account information.

3. View the Fringe Benefit Tax Report

Once you have configured FBT account wise, you can view the respective report. To view the Fringe Benefit Tax report, perform the following tasks: Click Display Menu Accounts Summary Fringe Benefit Tax Report

Given here is a screenshot of the menu options.

BIPL

Implementation of FBT

Busy

Enter the date range in Starting Date and Ending Date fields Click the Ok button to view the Fringe Benefit Tax Report

After following these three steps you have successfully implemented FBT in BUSY.

BIPL

Implementation of FBT