F.B.T.
Hemant Joshi
(Querist) 02 May 2009
This query is : Resolved
Whether Fringe Benifit Tax will be applicable for the expenditure made on inauguration of plant like -'Pooja Ceremoney' and 'lunch' given to workers in the factory premisis?
As per sec.115WB(2),....but does not include any expenditure on,or payment for food provided by the employer to his employees in the office or facotry...
But as per Sec.115WB(2)E, FBT is applicable on 'expenditure on meeting/get together of employees and their family members on non-festival occasion including annual day'.
Please reply and oblige.
A V Vishal
(Expert) 02 May 2009
F B T is payable since the relevant section says that:
Further, as per Section 115WB (2), the fringe benefits shall be deemed to have been provided if the employer has incurred any expense or made any payment for the purposes of (a) entertainment; (b) festival celebrations; (c) gifts; (d) use of club facilities; (e) provision of hospitality of every kind to any person whether by way of food and beverage or in any other manner, excluding food or beverages provided to the employees in the office or factory;(f) maintenance of guest house; (g) conference; (h) employee welfare; (i) use of health club, sports and similar facilities, (j) sales promotion including publicity; (k) conveyance tour and travel including foreign travel expenses; (l) hotel boarding and lodging; (m) repair, running and maintenance of motor cars; (n) repair, running and maintenance of aircrafts; (o) consumption of fuel other than industrial fuel; (p) scholarship to the children of the employees.
Since the opening ceremony can also be a religious affair and the food provided to the employees was not from routine working of the factory/office and further food was served to friends/relatives and their families, I opine that FBT is payable
