FBT On Depreciation

Hi,

Is Depreciation of vehicle is libale to FBT u/s 115wb, pls suggest. Vehicle owned by company and used by company 1.car  2.Truck used for materials transporting.

Replies (10)

 I think no

20% of the depreciation shall be taken as value of Fringe Benefits for the purposes of levying FBT. As far as truck is concerned, it is not liable to FBT

Yes,FBT is payble on depreciation except truck. FBT amoun is 20% of depreciation on motrc ars

In your case covered under Section 115WB (2) (H) of the Income Tax Act.

The car expenses like fuel, running, repair and maintenance & depreciation all covered under FBT the amoun of chargeble is 20% of total expenses except Truck.

The rate of tax would be as normal.

Yes, Depreciation on Car is liable to FBT. Depreciation on Truck is not liable to FBT.

FBT is applicable on car @ 20%.as truck doesnot comes under motorcar hence not liable for FBT.

              The provisions of sec.115WB clause H of I.T.act relating to FBT says that any repair , running maintainence including fuel of motorcars and the amount of depreciation are liable for FBT @ 20%.
               According to me defination of Motorcar does not include truck. Hence it shall not be covered under this sec. and clause.
               Any mistake commenced by me are most welcomed.

Yes, Depreciation on Motor Car owned by the company is liable for FBT . However, Depreciation on Truck is not liable. Value for FBT is 20% . Pl note that FBT is applicable only if the said company have any employee during the year.

Thanks,

CA. Ashok Shah

Considering there is atleast one employee on payroll, then FBT is applicable on depreciation on car @ 20% and then tax at normal rate.

No FBT on depreciation on truck.

 

Ashok is siad right.

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