Skip to Content

Archived discussions are read-only. Learn more about SAP Q&A

Regarding Fringe Benefit Tax (FBT)

Dear All,

Is there any consideration of FBT ( Fringe Benefit Tax) in SAP Business One.

In mean to say any addon of FBT just like TDS addon which is available.

How did other consultants taken care of FBT in their projects. Do Guide me. As my client is requiring it.


Hitesh Parsawala

Former Member
Former Member replied


This is the question we posted to SAP regarding FBT:


Iam using SBO 2005B PL:31. 
How to create FBT tax code and use it financial transactions. 
My current client has given no options for me. Without FBT he says, 
financials is not completed. 
I think creation of new tax code should help this issue. 
But provide me how to do all this. 
I am afraid whether this is missing functionality. 

Fringe Benefit Tax (FBT) is a tax levied on perquisites-or fringe 
benefits -provided by an employer to his employees, in addition to the 
cash salary or wages paid. Fringe Benefit Tax was introduced in India 
in the year 2005-2006. 

Fringe benefits shall be deemed to have been provided if the employer 
has incurred any expense or made any payment for the purposes of: 
(a) entertainment; 
(b) festival celebrations; 
(c) gifts; 
(d) use of club facilities; 
(e) provision of hospitality of every kind to any person whether by way 
of food and beverage or in any other manner, excluding food or 
beverages provided to the employees in the office or factory; 
(f) maintenance of guest house; 
(g) conference; 
(h) employee welfare; 
(i) use of health club, sports and similar facilities; 
(j) sales promotion, including publicity; 
(k) conveyance, tour and travel, including foreign travelexpenses; 
(l) hotel boarding and lodging; 
(m) repair, running and maintenance of motor cars; 
(n) repair, running and maintenance of aircraft; 
(o) consumption of fuel other than industrial fuel; 
(p) use of telephone; 
(q) scholarship to the children of the employees. 

The reply from SAP Support was

SBO doesn't support FBT,as we don#t have Payroll. FBT information is 
notcompleted unless we have Payroll and then we can develop some 
additional functionality to use Dimension for employees also. 

Presently during implementation can use Tax code/formulas for FBT and 
use some UDF's to capture details related to different kind of expenses. 

0 View this answer in context

Helpful Answer

Not what you were looking for? View more on this topic or Ask a question