Clarification on FBT - Hospitality

This query is : Resolved

hardik (Querist)
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19 December 2008 Respected Sir,

According to explanation of expenses incurred on account of hospitality-
food, beverages etc provided to visitors in the office and outside the office is liable to FBT. However, as per CIRCULAR NO.8/2005 on FBT employer-employee relationship is a pre-requisite for the levy of FBT, then how can FBT be leived on expenditure incurred on visitors.

Please explain.

Thanks and regards

Jitender

Jitender (Expert)
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20 December 2008 becz this is covered under deeming fiction under the chapter FBT.

hardik

hardik (Querist)
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20 December 2008 Thank you Mr Jitendar,
i would like to further ask whether an Excise Officer permantly appointed by the Excise Dept for keeping a check on excise payable by the assessee, be termed as an "Visitor"
and whether food etc provided to such officers be liable to FBT.

Thanks and Regards.

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