FBT chargeability

This query is : Resolved

venkat (Querist)
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16 November 2007 is the staff welfare expoenses like food provided by the employer to labourers and guests is chargeable to FBT.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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16 November 2007 Any expenditure on or payment for food or beverages provided by the employer to his employees is in office or factory is excluded from the FBT-section 115WB(2)(B)

R.V.RAO

R.V.RAO (Expert)
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16 November 2007 UNDER SECTION 115 WB(2)(E) EXP. ON FOOD AND BEVERAGES TO EMPLOYEES IS NOT TAXABLE AS FRINGE BENEFIT. SIMILARLY EXP. ON PURCHASE OF LUNCH VOUCHERS TO USE AT EATING JOINTS BY STAFF IS ALSO EXEMPT AS THESE ARE NOT TRANSFERABLE.
FOR OTHER CATEGORIES OF EXEMPT OR TAXABLE ITEMS UNDER STAFF WELFARE ,PL. REFER THE ABOVE SECTION.
R.V.RAO

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Amarjeet Singh

Amarjeet Singh (Expert)
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16 November 2007 If bill of food and Bevreges is reimurse by the employer then he is liable to pay FBT on it.If it is provided in the office or through paid voucher then he is not required to pay FBT on it.

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
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16 November 2007 The concept of Fringe Benefit is that if a collective benefit is given to all employees, then usually FBT is not attracted. However the list Fringe Benefits should be gone through for concluding.

Since this benefit is not encasheable and it is specifically exempt as Fringe Benefit, there is no taxability.