COMPUTATION RELATED TO FBT

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This query is : Resolved

sourabh (Querist)

30 September 2007 SIR/MADAM,
MY QUERY IS RELATED WITH FBT. QUERY IS THAT WHETHER EXPENSE RELATED TO INSURANCE ON MOTOR CAR IS CONSIDERED UNDER THE CALCULATION OF FBT OR NOT?
SOURABH

Ravikumar.G

Ravikumar.G (Expert)

01 October 2007 There is no clarity in this regard. Some authors says that it will come under FBT Net, some others says vice verse. In my point of view that it will not come under FBT Net.

sivasankar

sivasankar (Expert)

01 October 2007 Hi,
It will come under FBT because its an expense related to the car.
Even the driver salary will be under FBT if accounted separately.
Moreover any interest paid on the car loan will be also subject to FBT.

Naveen

Naveen (Expert)

01 October 2007 NO, INSURANCE NOT COVERED UNDER FBT, AS IT IS NOT MANDATORY FOR RUNNING & MAINTAINANCE OF CAR

CA. Raviprakash M.S

CA. Raviprakash M.S (Expert)

03 October 2007 the section speaks of running and maintanance cost of motor car. I think maintanance expenses includes insurance, roadtax etc., giving vide intrepretation for the word maintanance the insurance cost covers. i suggest you to pay the tax

muttunagouda

muttunagouda (Expert)

07 October 2007 dear
sourabh,
the insurance is an expeness which is necessry to run a car/vehcile
so you have to pay the FBT