FBT levied on pre-operative Exps or not
This query is : Resolved
Hira Singh Bisht
(Querist)
25 September 2009
Whether FBT will be charged on the Expenses related to the pre-operative Exps.
Our Co.'s head office is in Hyd, it Started a new branch in Delhi from Last F/y ie 08-09 but operation started from 01-04-2009 there was no staff upto 31-3-2009 in Delhi branch and all expenditure comes uder pre-operative expenses.
So my question is, whether in our case FBT will be levied or not
Our Co.'s head office is in Hyd, it Started a new branch in Delhi from Last F/y ie 08-09 but operation started from 01-04-2009 there was no staff upto 31-3-2009 in Delhi branch and all expenditure comes uder pre-operative expenses.
So my question is, whether in our case FBT will be levied or not
25 September 2009
If there was no staff , i think FBT provisions dont apply .
CA SANJAY MUKHERJEE
(Expert)
26 September 2009
Dear Sirs,
Please keep in mind that the branch is not the assessee but the company is the assessee.
So the absence of employee in the new branch may be not same as the Company does not have any employees.
If you already have employees in Company's payroll you have to pay FBT.
I don't know any notification which says about operation/division/branch specific calculation of FBT.
I would request to share if somebody got any such information
Please keep in mind that the branch is not the assessee but the company is the assessee.
So the absence of employee in the new branch may be not same as the Company does not have any employees.
If you already have employees in Company's payroll you have to pay FBT.
I don't know any notification which says about operation/division/branch specific calculation of FBT.
I would request to share if somebody got any such information
Ratan Sharma
(Expert)
26 September 2009
FBT is payable even if expenses debited to preoperative exps account.
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