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FBT - No. of Employees

Sachin Adsul (HOD Excise dept) (178 Points)

13 March 2009

How we calculate depriciation

is this taken on inclusive Excise duty or exclusive

pls clarify me.

sachin Adsul

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3 Replies

Arvind (Article) (150 Points)
Replied 13 March 2009

Originally posted by :Gaurav Guglani
"	Dear Sir, It is a known fact that in case there is no employee in Company FBT cannot be levied however I have following two queries and sought expert views on the same : /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";} 1. 1. Will a Company be held liable for FBT on expenses {of the type covered by Sec. 115WB (2)} in case it has just one employee on the rolls of the Company?(as the definition used says "Company should have employees in India" 2. 2. The Company has incurred some expenses which are liable for FBT but didn’t had any employee. Subsequently it appoints one/two employee in the Company. Whether FBT will be levied on the expenses {of the type covered by Sec. 115WB (2)} incurred from the date the employee joins the organisation or from the first date of the financial year? According to me FBT will be leviable as 1 employee is on roll.	"

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 14 March 2009

Well sachin, if you are taking credit of duty paid, value of capital goods has to be taken without duty. If you are not taking cenvat credit, value has to taken with duty for depreciation purposes.

You can take both- cenvat credit & depreciation simultaneously.

Sachin Adsul (HOD Excise dept) (178 Points)
Replied 16 March 2009

Originally posted by :Rajesh Kumar
"	Well sachin, if you are taking credit of duty paid, value of capital goods has to be taken without duty. If you are not taking cenvat credit, value has to taken with duty for depreciation purposes. You can take both- cenvat credit & depreciation simultaneously.	"