FBT IN CASE OF TRAVEL COMPANIES!!!!!!!!!!!!!!!!!!

This query is : Resolved

Sindhu (Querist)
Follow

10 October 2007 WHAT ARE THE FBT PROVISIONS APPLICABLE IN CASE OF A TRAVEL AGENCY???????????? WHAT ABOUT THE FUEL EXPENSES? VEHICLEMAINTENANCE? IS THERE NO WAY TO ESCAPE FROM FBT????/

Ravikumar.G

Ravikumar.G (Expert)
Follow

10 October 2007 Where the employer is engaged in the carriage of passengers or goods by motor car, a lower rate of 5% of expenses on repair, running (including fuel) and maintenance of motor cars and depreciation thereon has been specified;

Sindhu

Sindhu (Querist)
Follow

10 October 2007 CAN WE DO ANY KIND OF TAX PLANNING IN THAT CASE OR NO? BECAUSE IN CASE OF A TRAVEL AGENCY ALL THERE EXPENSAES ARE LIABLE.

Ravikumar.G

Ravikumar.G (Expert)
Follow

10 October 2007 Obviously. There is no Tax planning. Eventhough the entity getting loss they will liable for FBT

CMA Gul S

CMA Gul S (Expert)
Follow

10 October 2007 Mr Ravi is correct

CA. Rayan Sequeira

CA. Rayan Sequeira (Expert)
Follow

10 October 2007 Hi Sindhu,
AS PER SEC 115WB(2)(H) ANY EXPENDITURE INCURRED BY AN EMPLOYER FOR REPAIR, RUNNING(INCLUDING FUEL) MAINTAINANCE OF MOTOR CARS AND DEPRECIATION THEREON IS LIABLE TO FBT WHETHER IT IS IN THE COURSE OF HIS BUSINESS(WHETHER OR NOT IT IS CARRIED ON WITH AN INTENTION OF DERIVING PROFITS) AND WHETHER OR NOT ITS PROVIDED TO HIS EMPLOYEES AS THIS IS A DEEMING SECTION AND SPECIFICALLY NAMES THESE ACTIVITIES AS CHARGEABLE

Sindhu

Sindhu (Querist)
Follow

11 October 2007

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now