FBT for capitalised expenses
This query is : Resolved
28 May 2008
dear sirs,
i want to know whether FBT will applicable to the expenditures which are capitalised during the year. i mean like Staff welfare ,if the head is capitalised weather for the expenses FBT will be applicable.
Sujit
i want to know whether FBT will applicable to the expenditures which are capitalised during the year. i mean like Staff welfare ,if the head is capitalised weather for the expenses FBT will be applicable.
Sujit
28 May 2008
from the FAQ issued by CBDT:
29. In a case where the expenses are capitalized and amortized over a period, whether FBT will be payable over the whole of the amount capitalized or restricted to the amount amortized during the year?
FBT is payable in the year in which the expenditure is incurred irrespective of whether the expenditure is capitalized or not. However, the same expenditure will not be liable to FBT again in the year in which it is amortized and charged to profit.
29. In a case where the expenses are capitalized and amortized over a period, whether FBT will be payable over the whole of the amount capitalized or restricted to the amount amortized during the year?
FBT is payable in the year in which the expenditure is incurred irrespective of whether the expenditure is capitalized or not. However, the same expenditure will not be liable to FBT again in the year in which it is amortized and charged to profit.
29 May 2008
Sorry Yayati that is question no.19 and not 29 as suggested by you.Further don't you think that the expenditure is getting taxed twice.
30 May 2008
ya, in circular it is at no. 19, i copied it from following link which have put this question on no. 29:
https://in.rediff.com/money/2005/aug/31tax.htm
sorry, for inconvenience.
but anyway, text is correct and it is clear in the answer that exp. will not be taxable in the year, in which it is amortised and charged to profit. so, question of double taxation does not arise.
https://in.rediff.com/money/2005/aug/31tax.htm
sorry, for inconvenience.
but anyway, text is correct and it is clear in the answer that exp. will not be taxable in the year, in which it is amortised and charged to profit. so, question of double taxation does not arise.
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
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Query regarding TDS on EPFO Higher Pension Arrears*
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- 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
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
