TaxTMI 
TaxTMI 
Mine is a public limited company.CBDT is yet to come up with the new valuation (perquisite)rules.Of the total CTC of the employees, around 25% is in the form of reimbursements on which earlier we use to recover FBT and make the payments.Please suggest how should we proceed now as the government is yet to come up with the new valuation rules.
Valuation rules - FBT
06 Oct 2009 
2 Replies 
1214 Views Asked by
Perquisite valuation unclear after FBT removal; bona fide reimbursements with evidence should not be treated as taxable perquisites.
Valuation of employee perquisites after removal of fringe benefit tax remains uncertain pending new Income Tax Rules; absent valuation provisions, reimbursements supported by evidence and incurred for employer business purposes should not be treated as taxable perquisites, and employers should await formal rulemaking while maintaining documentary proof and preventing abusive reimbursement practices. (AI Summary)
Valuation of employee perquisites after removal of fringe benefit tax remains uncertain pending new Income Tax Rules; absent valuation provisions, reimbursements supported by evidence and incurred for employer business purposes should not be treated as taxable perquisites, and employers should await formal rulemaking while maintaining documentary proof and preventing abusive reimbursement practices. (AI Summary)