FBT on School Fees

For this if possible pls tell us in what ledger u are taking this school fees while passing the journal entry

We accounting under ledger "School Fees"

Yes.

It can be offered for FBT under the head 'Employee Welfare' @ 20% of the school fees. The tax outflow effectively comes to 6% of the school fees(approx - 20% of 33.33%).

Alternatively, it can be treated as perk. In which case, it will be included  in the salary of the employee and the employee shall be entitled to deduction u/s 80C in respect of tuition fees paid. The perk shall be exempt if the amount of tuition fees do not exceed Rs. 1000 p.m. per child - max 2 children

In my view, any of the above alternative can be adopted taking the tax outflow in consideration. IF the benefit is provided to small number of employees, Section 17(2) gets attracted. If it is provided to majority of employees, section 115 (FBT) gets attracted.

but AO will try to put it under FBT

so appeal n other proceedure will go on

It will be treated as Employees Welfare & will be taxed @ 30% of 20% Value.