Fbt bal. treatment

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Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2011 Dear Experts

What will be the treatment of FBT of past lying in the Balance sheet in Advance???

Thanks in advance for resolving query

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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18 September 2011 Better to transfer to partner's capital accounts.
OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 cant understand the logic behind transferring to partners capital account.

It means partners are taking the FBT advance?????

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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20 September 2011 Please reply me for which year it relates then i will explain you.
OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 It relates to the FY 2008-09

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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20 September 2011 for FY 2008-09 the fbt is in force then you will get refund from the IT department if you claims refund in the incometax return after receipt of refund the advance fbt paid shows in balancesheet would be nill if any excess received will be treated as interest on refund then no question arises otherway of treatment. If you not filled the return for that year or no claim made then better way is transfer to capital accounts of partners because it will not allowable as expenditure and no any other adjustment.
OM SAI SRI SAI JAI JAI SAI

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