26 May 2008
INSURANCE TAKEN FOR THE EMPLOYEE FROM FEB'08 - JAN'09.FOR CALCULATING FBT CAN WE TAKE THE WHOLE AMOUNT(INCLUDING PREPAID EXPENSES).OR ONLY A PART?
26 May 2008
CIRCULAR NO 8/2005 DT. 29 TH AUG 05 OF CBDT CLARIFIES THAT FBT IS PAYABLE IN THE YEAR IN WHICH THE EXP. IS INCURRED. SO IF YOU HAVE INCURRED INS. EXP. IN FEB 08 ,YOU NEED TO PAY FBT IN 08 ITSELF. PREPAID OR OUTSTANDING EXP. IS A MATTER OF ACCOUNTING CONVENTIONS AND HAS NO BEARING ON FBT. R.V.RAO
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