FBT collection slows, up only 87% till Sept

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New Delhi, Sep 24 : India Inc seems to be cutting down on the perks and allowances that it shells out to employees. Latest direct tax figures for this quarter show that while corporate tax collections continue to grow robustly, growth rate of fringe benefit tax receipts have slowed down.

Simultaneously, reflecting the recent weakness in the stock market, securities transaction tax and banking cash transaction tax receipts have also come down.

FBT collections rose by 87.41% till September 21, compared with the whopping 348% growth in the first quarter of the fiscal, ending June 15. FBT is levied on companies for the allowances and perks it pays to its employees. Corporate India has strongly protested the levy.

A finance ministry statement issued on Monday showed personal income tax collections ((including FBT, STT and BCTT) recorded an overall growth rate of 37.47% to stand at Rs 38,819 crore. It was Rs 28,238 crore during the same period last fiscal. The growth in securities transaction tax (STT) was 45.52% while banking cash transaction tax (BCTT) was 21.36%.

Overall corporate tax collections has remained buoyant, recording a growth of 42.37% at Rs 67,207 crore, up from Rs 47,207 crore during the previous fiscal, the release added.