Urgent FBT query

Whether FBT is leviable on uniform provided in a hotel industry which is a necessity for the company and is taken back after office hours. If yes under which head. Whether Staff Welfare? Whether the same can be categorised under hospitality so as to attract 5% presumtive tax. If no, any specific reason,case law

Replies (6)

"F. No. 142/21/2005-TPL CIRCULAR NO. 8 /2005 

Qn.  "Whether FBT is payable on expenditure incurred on providing safety shoes or uniforms or equipments to the employees or for the purposes of reimbursement of washing charges?

Ans. "Any expenditure incurred for meeting the employer’s statutory obligations under the Employment Standing Orders Act, 1948, fall within the scope of the exclusion in the Explanation to clause (E) of sub-section (2) of section 115WB. Therefore, expenditure incurred on providing safety shoes or uniform or equipment to the employees or incurred for the purposes of reimbursement of washing charges, is exempt from FBT to the extent such expenditure is incurred to meet such statutory obligation."

Telephone bill paid by PCO / STD operator against call made by customer & not staff. Will this payment attract any FBT under Telephone Exp. If not is there any clarification or case law  for the same. please reply soon

thanks

Originally posted by :Saurabh
" Whether FBT is leviable on uniform provided in a hotel industry which is a necessity for the company and is taken back after office hours. If yes under which head. Whether Staff Welfare? Whether the same can be categorised under hospitality so as to attract 5% presumtive tax. If no, any specific reason,case law "


 

if Uniform provided out of statutory obligation it will exempt.

I want Nature of Expenditure of FBT ?

Please clarity whether travelling and food expenses reimbursed to interview candidates and other expenses incurred for staff recruitment will attract FBT.

FBT is not  payble.

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