FBT to be classified as a tax expense
The Institute of Chartered Accountants of India (ICAI) has clarified that Companies have to classify FBT (fringe benefit tax) as a tax expense along with current tax and deferred tax after the net profit has been arrived at in the profit and loss account. It cannot be shown as the employer’s cost as he does not benefit from it
The institute also clarified that revenue from a construction contract partly completed will also be regarded as a contractor's turnover for that period of the contract term.