FBT

Whether expenses done by school for annual day function will come under Entertainment Expenses and liable to FBT?

Replies (15)

In what category is the school assessed -Whether it claims exemption u/s 12?

 

 

no, it doesn't claim exemption u/s 12.

Yes , FBT will be Applicable u/s 115WB Sub section 2L

Yes, The scholl will be liable to pay FBT on entertainment expenses.

yes the school will be liable to pay FBT.

No, I dont think annual function expenses by any school is an entertainment expenses. Anuual function in a school is not meant for entertainemnt of school children or parents. Its a part of school studies and activities.

No, I dont think annual function expenses by any school is an entertainment expenses. Anuual function in a school is not meant for entertainemnt of school children or parents. Its a part of school studies and activities.

No, I dont think annual function expenses by any school is an entertainment expenses. Anuual function in a school is not meant for entertainemnt of school children or parents. Its a part of school studies and activities.

Originally posted by :deepak K Gujrati
" No, I dont think annual function expenses by any school is an entertainment expenses. Anuual function in a school is not meant for entertainemnt of school children or parents. Its a part of school studies and activities. "


 

Yes. These expenses will attract FBT. Though the annual function isa part of curriculum it is not mandatory for school to conduct the same.

 

 

refer to tushar yerawar and deepak k gujrati

Yes, entertainment expenses would be liablre to FBT even if it is a part of the curriculum or not. As, FBT has deemeing provisions for entertainment expenses, and thus actual purpose is irrelevant. Therefore it is deemed that 20% of the total entertainment expenditure is liable for FBT.

Yes it will be liable to FBT, under Employees Welfare @ 20%,

Thanks

 

whether free samples are exmpted from FBT?

Yes FBT will be aplicable on 20% of expenses

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