FBT on hall hire charges for employees get-together

A company hires and pays Hall hire charges to the hall owner on every 4th saturday of every month. THe hall is hired for the purpose of get-together of the employees of the company. Also the company provides food lunch/snacks etc to the employees at the hall.

The expenses on food is liable to FBT as the same is provided outside the office premises.

Now my query is:

Whehter the rent paid for hiring of hall for get t-ogether of the employees of the company is also liable to FBT? If yes ,why ?

Logical replies are expected from esteemed members.

Thanks.

Replies (6)

the nature of hire charges here is of entertainment nature therfore liable to fbt.

Is this chargeable under Entertainment or staff welfare  or Hospitiality ?

Staff Welfare / Enteretaimnet Expenses both are apt one than Hospitality.

Booking it as Hospitality wouldnt sound much suitable for this case. Either Staff Welfare or Entertainment is right. And moreover there will be no difference, as the portion of expense on which FBT is chargeable is the same for both i.e. 20%

I feel Radhika is right, either entertainment or staff welfare

Staff welfare is correct so that you will not have problem with Income Tax.

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