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accounting procedure for FBT

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vivek

vivek (Querist)
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29 June 2007 Hi,
i want to know about FBT.Whats are accounting procedure for this ?

Shashi Mohan Jha

Shashi Mohan Jha (Expert)
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30 June 2007 You can refer " Guidence Note on accounting of FBT" issued by ICAI. Accordingly as loon as "expenses" are incurred, liability of "Service Tax" arises even though th epayments are made latteron.
Provision shoul dbe made...amount to be calculated as per 115WC

Amit Thapar

Amit Thapar (Expert)
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02 July 2007 Advance FBT paid should be shown under the heading "Loans & Advances". Provision should be made for FBT just like Provision for Income Tax. It should be shown in Income statement after Deferred Tax Asset/Liabilities.

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