Dear Friends
I work for a media company (magazines). We hold branded events which are sponsored by various companies. We incur costs such as cost of venue (typically a 5 star hotel), room rentals, food and beverages,equipment hire, travel tickets for invitees and staff etc.,. Example the Economic Times awards.
I would like to understand whether such expenses are subject to FBT ?
We are not a government agency, trade association or body as per 115WB(2)(D) clause iii.
I would think the expenses are not expenses on conference or seminars as we are not attending but hosting the same.
Will it be considered as entertainment ?
Thanks in advance for your views and thoughts.
RRchandran
Well in my opinion the expenses mentioned above are infact in the nature of conference
as mentioned u\s115WB(2)(C) as per the the explaination given to the section .
It is a deemed Fringe Benefit without having regard to on whose behalf u r holding a conferrence .However had the invoices for goods & services been issued in the name of the company the liabilty of FBT would have shifted to the co.
And it will not be treated as F.B u/s115WB(2)(A) as there is a specific sec. for Conference.
Correct me if i am wrong. 8) 8) 8) 8) 8) 8)
CAclubindia
