FBT on car sale

This query is : Resolved

Ajay (Querist)
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09 September 2008 Dear Sir,
Suppose Company has a car using for official purpose by Our GM and on his retirement car sold to him under car policy of Co.
WDV of Car as on date of sale Rs.400000/-
Sale value recovered from GM Rs.200000/-
There is loss of Rs.200000 for Comapany.
Actually Mkt value may be more the sale price.
Whether this transaction covered in the ambit of FBT liable for Company

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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09 September 2008 Transaction is not covered by FBT.
Moreover, value of the benefit on transfer of the Movable Asset is taxable as perks in the hands of the employee. In the given case the benefit on account of concession may be a taxable perk in the hands of Employee.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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09 September 2008 I agree with CA Ramesh Ahuja

CA Rajesh S

CA Rajesh S (Expert)
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09 September 2008 Transaction is not covered by FBT.

Taxguy

Taxguy (Expert)
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09 September 2008 As Rajesh says it may attract a loss of capital gain and other issues, but not FBT as after retirement where is the relationship of employer and employee.

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