FBT on Hospitality (Food and beverages) in hotel Industry

here you have to take 20% for FBT calculation.

suppose you have incurred 1000 Rs. then you have to pay FBT on 200(20% of 1000).

Hi Shuchi...
 

FBT will be leviable only in second case i.e. Complementary Guest because the expenditure in respect of them is debited to the profit and loss account. In first case there is no question of levy of FBT because its not an expense, there will be profit of sale-cost of service.

Thanks

Hi Shuchi

I am working with a big hotel group and worried for the same type of queries. I think we can help each other on these type of problems. If you are treating complemantry guest as a part of your sales promotion than you have to pay FBT @ 20%. So first you have to decided the you are giveing complementry service to which type of guests.

CA Anil Kumar Arora