What is the FBT liability on Car Lease from an authorised third party for an Employee?
What is the FBT liability on Car Lease from an authorised third party for an Employee?
FBT on Lease Car is 6.7980%. It is covered in Sec 115WB(2)(H)
| Originally posted by :Mathan | ||
| " | What is the FBT liability on Car Lease from an authorised third party for an Employee? |
" |
Car lease amount would be treated as expense on conveyance, tour and travel. This is clarified vide Q.No.82 in Circular No. 8 of 2005 dt. 29.08.2005. Accordingly the FB value would be taken as 20% (5% in the case of certain catetory of employers like those engaged in construction, software development, pharmaceuticals.
Thank You.That was helpful.
| Originally posted by :Raghava Ravi Kiran V | ||
| " | FBT on Lease Car is 6.7980%. It is covered in Sec 115WB(2)(H) | " |
how is this calculated ?
20 % of actual expenses and then 33.99% tax.
20*33.99%=6.798
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