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Applicability of FBT on Maintenance of Yatch

Moiz W (CA - Audit & Assurance) (66 Points)

16 June 2009

The assessee company is engaged in the business of Medical Consultancy and owns a Yatch for business purposes for its directors and clients. During the year, the company has incurred expenditure on maintenance of the Yatch. Whether such expenditure is taxable from FBT point of view and if yes, under which head? Thank You

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3 Replies

sandesh (CA FINAL) (33 Points)
Replied 17 June 2009

FBT is not applicable on maintainance of yatch as it is not covered under any clause of FBT. it is specifically applicable on repair & running expenses of motor cars & Aircraft.

Originally posted by :Moiz W
"	The assessee company is engaged in the business of Medical Consultancy and owns a Yatch for business purposes for its directors and clients. During the year, the company has incurred expenditure on maintenance of the Yatch. Whether such expenditure is taxable from FBT point of view and if yes, under which head? Thank You	"