Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

fbt on guest house

H S Rajashree (MBA in Finance) (221 Points)

06 December 2008

We have a guest house wherein our employees go and stay during business visits. This guest house is on rental and housekeeping is also there. Please suggest if these attract fbt. There is a madras high court ruling as to what forms a guest house and as per that these do not attract fbt. Please advise.

Reply
Follow
Share

9 Replies

narendra khandelwal (service) (204 Points)
Replied 06 December 2008

w.e.f. 01-04-2008 no FBT is payable on maintenace of Guest house.(ammendment in Finance Act 2008)

Upgrade to CAclubindia Pro. Subscribe Now!

CA Pawan Goswami (CA) (2928 Points)
Replied 06 December 2008

From Assessment Year 2009-10 onwards, Guest House expenses do not attract the provisions on FBT.

b.s.gokul (final student) (545 Points)
Replied 06 December 2008

ya.. what our friend pawan goswami said is right.. from asst. yr 2009-10, what you said will not attract provisions of FBT

CA CHINTAN AJMERA (Chartered Accountant) (2987 Points)
Replied 06 December 2008

Guest House expenses do not attract the provisions on FBT form the a.y. 09-10

Jitender (Chartered Accountant) (8724 Points)
Replied 06 December 2008

no fbt is payable on guest house maintenance as per the amendment.

Upgrade to CAclubindia Pro. Subscribe Now!

Omkar (Student) (255 Points)
Replied 07 December 2008

FBT on guest house maintenance is applicable.

Now,Jitendra,chintan and Gokul said that it's exempted from 08-09 onward.I request you to send the notification/circular reference in this regard.

Pranav Anand (13 Points)
Replied 13 December 2008

Originally posted by :Omkar
"	Ammended by Finance Bill 2008. No FBT on G/H expenses from 01.04.2008.	"

(Guest)

Please send me the Nov 2008 PCC question paper.

Thanks in advance

Zehran (SAP Consultant) (37 Points)
Replied 02 March 2009

everyone know guest house expenses is outside the purview of fbt but no one is stating what constitutes guest house. unless that is replied the the thread is unproductive. i like someone to answer the employee quaters used on a temporary basis can be called a guest house