Book Profit u/s 115JB
This query is : Resolved
21 December 2010
Sir,
There are different opinions on consideration of FBT and Deferred Tax while calculating Book Profit u/s 115JB.
Whether adding back of FBT and Deferred Tax is justified for the purpose of sec. 115JB?
Are there any case laws supporting the same?
Regards.
There are different opinions on consideration of FBT and Deferred Tax while calculating Book Profit u/s 115JB.
Whether adding back of FBT and Deferred Tax is justified for the purpose of sec. 115JB?
Are there any case laws supporting the same?
Regards.
21 December 2010
as per CIRCULAR NO.8/2005 Explanatory Notes on the provisions relating to Fringe Benefit Tax
103. Whether FBT would be allowable deduction while computing book profit under section 115JB?
Ans. FBT is a liability qua employer. It is an expenditure laid out or expended wholly and exclusively for the purposes of the business or profession of the employer. However, sub-clause (ic) of clause (a) of section 40 of the Income tax Act expressly prohibits the deduction of the amount of FBT paid, for the purposes of computing the income under the head profits and gains of business or profession. This prohibition does not apply to the computation of book profit for the purposes of section 115JB. Accordingly, the FBT is an allowable deduction in the computation of book profit under section 115JB of the Income tax Act.
Deferred tax is not an allowable reduction as per retrospective amendment in 115JB.
103. Whether FBT would be allowable deduction while computing book profit under section 115JB?
Ans. FBT is a liability qua employer. It is an expenditure laid out or expended wholly and exclusively for the purposes of the business or profession of the employer. However, sub-clause (ic) of clause (a) of section 40 of the Income tax Act expressly prohibits the deduction of the amount of FBT paid, for the purposes of computing the income under the head profits and gains of business or profession. This prohibition does not apply to the computation of book profit for the purposes of section 115JB. Accordingly, the FBT is an allowable deduction in the computation of book profit under section 115JB of the Income tax Act.
Deferred tax is not an allowable reduction as per retrospective amendment in 115JB.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- SGST balance is there in credit ledger how to adjust for cgst
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
