is FBT applied

If utensils are purchased for in house canteen,it should be treated as fixed assets.

Thanks, 

Yes, Lovenish is right.

The expenses has to be capitalised and FBT is not chargeable

NO FBT is chargeable

but the co. is treating it as a staff welfare expense stating the amount is not material (80000 approx) & the utensils will not last for a long.

if it is teated as staff welfare , is FBT charged on this?

pls advice

No... FBT is not chargeable...

Even if the employer takes such expenses to Profit and Loss A/c, it is realting to provision of food and beverages to employes inside the office, which is excluded from the definition of fringe benefits u/s 115WB.

So FBT is not chargeable in either case...!!

Hope this helps you...

Best Regards

Madhumita

thanx madhumita

i got it