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
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
