Urgent - FBT on Guest House exp
This query is : Resolved
Sakshi Gumbar
(Querist)
14 March 2009
Are the Expenses on maintenance of Guest House liable to FBT for the AY 2009-10?
CA Tilak Raj Sharma
(Expert)
14 March 2009
Yes u/s - 115WB(2)(K)
Reetika Goel
(Expert)
14 March 2009
Yes, covered under Sec 115WB(2)(K)
Value of Fringe Benefit - 20% of Total Expenditure
Value of Fringe Benefit - 20% of Total Expenditure
Sakshi Gumbar
(Querist)
14 March 2009
Thanks for the replies. But the Exp of maintenance of the Guest house does not attract FBT from the AY2009-10.
This amendment was made in the Finance Act 2008.
This amendment was made in the Finance Act 2008.
02 August 2025
Here’s the clarification on **FBT applicability on Guest House expenses for AY 2009-10**:
---
### Key Points:
* **Earlier Position:**
As per **Section 115WB(2)(k)** of the Income Tax Act, expenses on maintenance of guest houses were considered as a fringe benefit, and hence liable to Fringe Benefit Tax (FBT).
* **Amendment by Finance Act 2008:**
The Finance Act 2008 **specifically exempted expenses incurred on maintenance of guest houses** from FBT **w\.e.f. Assessment Year 2009-10**.
---
### So,
* For **AY 2009-10 and onwards**, **maintenance expenses on guest houses are NOT subject to FBT**.
* This means **no FBT is payable on guest house maintenance costs** from AY 2009-10.
* However, other provisions of FBT (if any) on different types of fringe benefits may continue to apply.
---
### Summary:
| AY | FBT on Guest House Maintenance? |
| -------------------- | -------------------------------------- |
| Before 2009-10 | Yes, 20% of total expenditure included |
| From 2009-10 onwards | No, exempted by Finance Act 2008 |
---
If you want, I can help you draft an explanation note or help with FBT return compliance related to this. Need assistance?
---
### Key Points:
* **Earlier Position:**
As per **Section 115WB(2)(k)** of the Income Tax Act, expenses on maintenance of guest houses were considered as a fringe benefit, and hence liable to Fringe Benefit Tax (FBT).
* **Amendment by Finance Act 2008:**
The Finance Act 2008 **specifically exempted expenses incurred on maintenance of guest houses** from FBT **w\.e.f. Assessment Year 2009-10**.
---
### So,
* For **AY 2009-10 and onwards**, **maintenance expenses on guest houses are NOT subject to FBT**.
* This means **no FBT is payable on guest house maintenance costs** from AY 2009-10.
* However, other provisions of FBT (if any) on different types of fringe benefits may continue to apply.
---
### Summary:
| AY | FBT on Guest House Maintenance? |
| -------------------- | -------------------------------------- |
| Before 2009-10 | Yes, 20% of total expenditure included |
| From 2009-10 onwards | No, exempted by Finance Act 2008 |
---
If you want, I can help you draft an explanation note or help with FBT return compliance related to this. Need assistance?
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