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.
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.
CAclubindia
