Fringe Benefit tax

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This query is : Resolved

CA.Aman Dugar (Querist)

14 March 2008 Whether travelling expenses for purchase of machinery which are capitalised along with the cost of machinery are liable to FBT in light of answers to Q.19 and Q.89 of CIRCULAR NO. 8/2005 of CBDT.

CA.Aman Dugar

CA.Aman Dugar (Querist)

14 March 2008 Please answer this question

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

14 March 2008 FBT liability will arise on items listed u/s 115WB not withstanding whether the expenditure is capitalised or not

prem pareek

prem pareek (Expert)

14 March 2008 FBT liability will arise on items listed u/s 115WB not withstanding whether the expenditure is capitalised or not

CA.Aman Dugar

CA.Aman Dugar (Querist)

15 March 2008 Please justify your answer.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

15 March 2008 YES THE AMOUNT PAID FOR TRAVELLING SHALL BE CHARGEABLE UNDER FBT EVEN IF SUCH EXPENDITURE IS CAPITALISED

CA.Aman Dugar

CA.Aman Dugar (Querist)

15 March 2008 But Q.89 of CIRCULAR NO. 8/2005 of CBDT says that the proximate objective is to acquire an asset and hence it should not be liable to FBT.

MANAS ROUT

MANAS ROUT (Expert)

15 March 2008 U/S 115WB(2) is not liable for FBT for capital expenditure (except depreciaiton on motor cars or aircrafts )because the proximate purpose thereof is to acquire capital asset.