IS FBT APPLICABLE ON VEHICLE HIRE CHARGES
This query is : Resolved
03 October 2007
Is Fbt applicabe on vehicle hiring charges & under whice section and act
03 October 2007
UNDER SEC 115WB(2)(H),LEASE RENT OF MOTOR CAR IS TAXABLE EXCEPT WHEN IF IT IS INCURRED ON RUNNING AND MAINTENANCE OF DELIVERY VANS,DISPLAY VANS,AMBULANCES,TRUCKS,LORRIES,,BUSES,TRACTORS,TEMPOS.
R.V.RAO
R.V.RAO
Ravikumar.G
(Expert)
04 October 2007
Whether FBT is payable on any rent paid or payable for hiring or leasing of motor-cars?
82. Rent paid or payable for an operating lease of a motor-car is expenditure for the purposes of conveyance, tour and travel. Accordingly, it shall be treated as expenditure within the scope of clause (F) of sub-section (2) of section 115WB. However, rent paid or payable for a financial lease of a motor-car is in the nature of expenditure on running or maintaining of a motor-car. Therefore, such rent shall be treated as expenditure within the scope of clause (1) of sub-section (2) of section 115WB.
This has been issued along with circular No 8/2005
82. Rent paid or payable for an operating lease of a motor-car is expenditure for the purposes of conveyance, tour and travel. Accordingly, it shall be treated as expenditure within the scope of clause (F) of sub-section (2) of section 115WB. However, rent paid or payable for a financial lease of a motor-car is in the nature of expenditure on running or maintaining of a motor-car. Therefore, such rent shall be treated as expenditure within the scope of clause (1) of sub-section (2) of section 115WB.
This has been issued along with circular No 8/2005
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