One Company named X co ... deducts .5% from payments made to vendors as Mithai to be distributed to its employees as Mithai in terms of rupees not exceeding Rs. 5000 per employee in a year.
Mithai is not shown in Form 16 , so it is not taxable on employees hands.
But X co squares of its A/c of Mithai collected from vendors by distributing to its employees ....
Now my question is whether X co is liable for FBT on Mithai ?? If yes under which section .. Please give if any case . If X co is not liable to FBT then whether Vendors are Liable to FBT ?? Please Help ......
CAclubindia
