Fringe benefit tax
This query is : Resolved
04 September 2007
hi friends
my query is: a company's car met with an accident and the company lodged a claim with the insurance company. however the insurance company has not accepted the claim in full. the company has written off the balance amount to profit and loss account under the head repairs & maintenance - vehicle. is the company liable to pay FBT on this amount.
my query is: a company's car met with an accident and the company lodged a claim with the insurance company. however the insurance company has not accepted the claim in full. the company has written off the balance amount to profit and loss account under the head repairs & maintenance - vehicle. is the company liable to pay FBT on this amount.
04 September 2007
Hi,
Loss incurred on fixed asset cannot be written off to revenue first.
It should be shown separately as per A.S 5 (Extra-ordinary items)
Under the head Running & Maintainence of Motor Cars in FBT - Depreciation, R&M exp etc. are to be considered.
So, Loss on such car cannot be considered while computing FBT.
Loss incurred on fixed asset cannot be written off to revenue first.
It should be shown separately as per A.S 5 (Extra-ordinary items)
Under the head Running & Maintainence of Motor Cars in FBT - Depreciation, R&M exp etc. are to be considered.
So, Loss on such car cannot be considered while computing FBT.
04 September 2007
hello,
thanks for the reply. but i failed to mention that the car met with minor accident and it is not total loss. the insurance company reimbursed only about 75 percent of the amount incurred by the company on repairs of the car. and the company has debited the remaining 25 percent to profit and loss account. so how in this situation will the reply be to my query. whether the company has to pay FBT on this 25 percent.
thanks for the reply. but i failed to mention that the car met with minor accident and it is not total loss. the insurance company reimbursed only about 75 percent of the amount incurred by the company on repairs of the car. and the company has debited the remaining 25 percent to profit and loss account. so how in this situation will the reply be to my query. whether the company has to pay FBT on this 25 percent.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Value of property in capital gain
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
