Urgent - FBT on Guest House exp
This query is : Resolved
14 March 2009
Are the Expenses on maintenance of Guest House liable to FBT for the AY 2009-10?
14 March 2009
Yes u/s - 115WB(2)(K)
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
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?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST registration /aadion a new place of business in the same state and city
- Overtime income in salaried person case
- Reporting sale value mismatch for share transaction
- GTA (FCM & RCM) service in same GSTN registration with multiple business segment
- RCM invoice related QRMP
- Preparation of PL BS and presentation in ITR
- Regarding Trading & Investment in Shares and MF in the context of Income tax return
- Correction in filed Form 27Q - showing error due to deductee contact number
- CSR Applicability FY 2425
- AMENDMENT OF GSTR-1 B2B
- Regarding Withdrawal of unused amount in Capital Gain account scheme
- Business Income or Income from House Property
- Requirement of form 15CA (outward remittance)
- GST OFFICER WRONG NOTICE
- Credit Note entered twice
- Supporting document for trade name in GST
- Gst registration FY 2024-25
- Delay in filing Form 10 of a trust for asst year 23-24
- Form G for capital gain account closure
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
