28 January 2008
AS PER INCOME TAX ACT, TAX CAN ONLY BE LEVIED ON INCOME. AS PER DEFINATION OF INCOME, WHATEVER FBT IS CHARGED ON EXPENSES IS NOT COVERED THEN CHARGABILITY IS VALID OR NOT ? PLEASE GIVE ME ANSEWER.
28 January 2008
Even though FBT is Charged under Income tax Act on Expenses, Our FM's view is that it's an indirect evasion of tax. Eg: Reimbursements will not be taxed in E'ees hands & E'er's hands. To avoid that FBT was introduced. Moreover, It's copied from Foreign Laws as similar to other laws.
It's chargeability is valid if you consider FM's contention.
28 January 2008
fbt is preesumptive tax just like expenditure tax so it is applicable to all assesses except indivudal huf and specified assesses u/s 115w(b) it is taxable
28 January 2008
Several petitions have been filed before various HIgh courts challenging the constitutional validity of FBT. As far as I know the Hon'ble Kolkata High Court has even granted stay on FBT in the case of SREI.A final decision of the apex court is still awaited.
CAclubindia
