a employer purchase utensils for its organisation to be used in INHouse canteen. wiil this expense attract FBT
kindly reply...................
7 Replies
CA Lovenish Bansal
(JOB)
(343 Points)
Replied 02 June 2009
If utensils are purchased for in house canteen,it should be treated as fixed assets.
Thanks,
MANISH KAPOOR
(PARTNER)
(97 Points)
Replied 02 June 2009
The expenses has to be capitalised and FBT is not chargeable
NAMAN SINGHAL
(CA final , CS final)
(228 Points)
Replied 04 June 2009
but the co. is treating it as a staff welfare expense stating the amount is not material (80000 approx) & the utensils will not last for a long.
if it is teated as staff welfare , is FBT charged on this?
pls advice
CA Madhumita Binani
(Executive Accounts (SERVICE))
(389 Points)
Replied 10 June 2009
No... FBT is not chargeable...
Even if the employer takes such expenses to Profit and Loss A/c, it is realting to provision of food and beverages to employes inside the office, which is excluded from the definition of fringe benefits u/s 115WB.
So FBT is not chargeable in either case...!!
Hope this helps you...
Best Regards
Madhumita
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