mobile expenses

This query is : Resolved

mahavir (Querist)
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21 June 2008 whether expenses incurred on mobile is capital exp. or revenue and if it is revenue than FBT will be applicable or if it is capitalised than dep. on mobile will be taken for FBT calculation.

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PC-www.bharadwajinstitute.com (Expert)
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21 June 2008 DO YOU MEAN THE COST OF PURCHASING A MOBILE...yes... it is a capital expenditure

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PC-www.bharadwajinstitute.com (Expert)
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21 June 2008 Depreciation will be taken as a Perquisite value for FBT

mahavir

mahavir (Querist)
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21 June 2008 what about FBT

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PC-www.bharadwajinstitute.com (Expert)
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21 June 2008 Depreciation on the Mobile is the value to be taken for FBT....

Jitender

Jitender (Expert)
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22 June 2008 in my opinion,dep is will not be taken for fbt purposes.

Sarveshwar Lahoty

Sarveshwar Lahoty (Expert)
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22 June 2008 I agree with Jitender, Depre will not be taken for Fbt purpose. Purchase of mobile has to be Capitalised and the expenses incurred on its usage would be revenue expense and is liable for fbt

Tarun Gupta

Tarun Gupta (Expert)
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23 June 2008 Dear
The purchasing cost as well as dep.of the mobile is not liable to FBT but usage charges is covered under the preview of fbt.
Dep. is liable to fbt only in case of motor car.
Thanx

Azmathullah Khan

Azmathullah Khan (Expert)
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23 June 2008 Purchase of Mobile is to be capitalised, no FBT on either purchase or for depreciation.

Only on the usage of mobile bill FBT have to paid.

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