Caln of FBT in case A'see is not liable to maintain Books?

if partnership firm is not require to maintain books u.s 44AA, then they will claim expense on estimate basis and not by providing individual detail of expense. in that case they are not required to deposit FBT.

Regards

Piyush

As far as maintaining of books of accounts, These provisions are not applicable for FBT Purpose. FBT provisions fall under Chapter XII H which is independent from Chapter IV. So FBT will be payable even books are not maintained.

Thanks,

Lovenish, if the law provide me not to maintain books of accounts, like for that matter I am assessable U/s 44AE, then how will I come to know what my expenses are.

On the other hand, AO also does not have  the power to call for records. he can only ask for the method and presumption of calculation,

Will you provide me any case laws or the section which support your arrgument, because practically I have handeled a case in which similiar problem was faced but we took the ground that AO can not call for books of accounts.

Regards

Piyush

 I agree with Mr. Lovenish.

If the assessee is a company, it has to maintain books of accounts as per company law. In case of a partnership firm, generally the agreement stipulates the maintenance of books of accounts (I am not aware whether Partnership Act, 1932 mandates the same). And more often than not maintenance of books of accounts is stipulated by either the instrument of incorporation or law relating to that kind of organisation. In these cases the assessee has to maintain books of accounts as per those instruments/ laws as the case may be, if not underSection 44AA  of Income Tax Act, 1961. In such case, assessee shall not be able to claim that the expenditure is not known.

Further it may be put forward that no where it is expected by Chapter XII-H (FBT provisions) to maintain books of accounts in accordance with Section 44AA of the Act. Therefore it would be incorrect to infer that if books of accounts are not maintained under section 44AA, no fringe benefit tax would be payable.

Subhankar, first of all, a partnership firm is not liable to maintain books of account under any other act. Putting the quote that they have to maintain books of account is baseless. Three of my client, partnership firm, taxable U/s 44 AE are not maintaining books of accounts.

second we are not cliaming any expense when we are using presumptive tax  rate, its a deeming fiction, and law provide us the method to calculate the same.

What you are putting on plate is completely theoratical.

Regards

Piyush