fringe benefit tax

This query is : Resolved

parvinder singla (Querist)
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29 April 2009 In a manufacturing industry, Employees are provided refreshment (tea and snacks) during mfg process. These exps are debited to staff welfare account. Are these exps liable for FBT? It not, then what type of expenses are covered under the head employees welfare exps. for the purpose of FBT.
2 A director uses its own car for the company. The petrol exps of the same are charged to Travelling /conveyance exps in P & l a/c of the co. Are these exps liable for FBT?
3 Whehter FBT is to be paid on Advertisement.
Please clear the above queries.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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29 April 2009 1. This provision comes under the Provision for Hospitality (115WB(2)(B). However you don't need to pay FBT on this. But if you will post it under the head staff welfare then it will attract FBT. So please change the Account Head. For staff welfare Please section 115WB(2)(E).

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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29 April 2009 2. This expense will come under the head "Repair, running and Maintt. of Car" and it will attract FBT.

parvinder singla

parvinder singla (Querist)
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29 April 2009 Thanx for the ans.
Please reply for the other part also

parvinder singla

parvinder singla (Querist)
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29 April 2009 thanks a lot

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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29 April 2009 3. Only the points mentioned under the head "Sales promotion 15WB(2)(D)" for advertisement attracts FBT. Not the entire expenditure on advertisement.

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