FBT on Insurance of Car

You cannot run a car without insurance. If you do - that is a violation of the Motor Vehicles act. As such - insurance can be considered a part of the "running cost" of a car - at least a cost of running it legally.

Car Insurance is a part of running & maintenance cost i-e. it is ancilliary towards running & maintenance, though it is strictly not an item of maintenance cost of the car.

Dear Professional Colleague,
Whether FBT would be leviale on Insurance premium of Car?
 

In my view, it  is liable to FBT, because without insurance, running of car would attract penalty. Insurance is compulsory for running of car.  It does't matter  incurred for safty measure.

In a taxmann book, there is inlusive information not exaustive information, there is no circular.

Most of the Industires paying FBT on Insurance of car. 


Regards,

Anil Kumar Singh 

yes its a running and maintenance expenses without any literal contradiction without insurance you cant run your car .

insurance on car is to be covered as running & maintainence of motor vehicle.. u/s 115WB(2) clause (H).. as insurance is obligatory for running a car.. 20%of the value of insurance will be chargeable to % 

Brother,FBT would be leviable on the insurance expenses of car.

Boss u/s.115WB(2)(H), It's mentioned that Repair, Running and Maintenance of Motor cars include:

Repairs, Fuel cost, Maintenance, Depreciation, Lease rent, Salary paid to drivers , rent of garage, and interest on loans to purchase a car. so the act is silent whether to pay fbt on insurance. Since there is no a specific provision we can't include it under FB. So it can be ignored while computing FBT. Its my view. Some say Insurance is a maintenance cost and fbt will attract. Thought it seems to be in the nature of maintenace, its not at all a maintenace. Its a contingent expenditure rather.