FBT on Own Bikes

This query is : Resolved

Mahender Jain (Querist)
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02 May 2009 Company has three Bikes shown in its books

so Expense of Petrol & Repair is liable for FBT or not

as in Motor car running exp. u/s 115WB(2)(H) Only exp of Motor car are to be taken for FBT but no explaination given for whether FBT applicable on petrol & repair exp of Bike of Companies.

and even it also not mentioned in Travelling Y Conveyance Exp U/s 115WB(2)(F),

so whether petrol & repair exp of own bike is allowable for FBT or not

taxindiaconnect

taxindiaconnect (Expert)
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02 May 2009 Section 115WB(2)(H) provides that the “expenditure on repair, running (including fuel), maintenance of motorcars and the amount of depreciation thereon is subject to FBT”

No Definition has been provided in the Act for motor cars, so the meaning of Motor cars is to be seen from the definition of Motor car as provided by section 2(26) in the Motor Vehicles Act 1988 which is as following –
Motor Car means any motor vehicle other than a transport vehicle, omnibus, roadroller, tractor motor cycle or invalid carriage.

Thus Motor Cycle are not included in the definition of motor car, accordingly the FBT is not applicable on the running, maintenance, insurance or depreciation of motorcycles provided a separate account is maintained in books.