FBT CLARIFICATIONS

This query is : Resolved

Priyanka (Querist)
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27 September 2007 1) WHETHER REIMBURSEMENT OF EXPS. TO AUDITOR TOWARDS LUNCH & SNACKS 1) INSIDE PREMISE OF CLIENT 2) OUTSIDE PREMISE OF CLIENT ATTRACTS FBT ?

2) WHETHER DEPN. ON MOTOR CAR WILL ATTRACT FBT INLY IN 4 TH QUARTER OR HAVE TO BE CONSIDERED EVENLY THROUGHOUT THE YEAR ?

3) HOW THE DEPN. ON CAR WILL HAVE TO CONSIDERED IN CASE OF SALE OF CAR AFTER 180 DAYS

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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27 September 2007 Reimbursement of lunch etc. will attact FBT in case where the bills are in the name of Assesse who is having at least one employee.
If you debited depreciation to P & L account then it is liable for FBT

Ravikumar.G

Ravikumar.G (Expert)
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27 September 2007 Reimbursement of Expenses will attract FBT.

If you provide any Food Coupens it will come under FBT net (Ex. Sodexo pass like that)

Depreciation on motor car we can condider in last quarter. Because there is no specific provision is provided for depreciation. Income tax depreciation is applicable. Goods vehicle and Two wheelers will not come under FBT Net.