FBT on Motor Car (Depriciation)

Dear Mr. Paresh

Well in regard to ur 1st query, i believe that if the Motor car is sold during the year no depreciation can be provided as the block of Assets cease to exist at the end f the year. Since FBT is paid on the expenses incurred during the year in running, operating & maintaing Motor car and since Depreciation is alwayz provided at the end of the year so you need not pay FBT on the expenses which you have not incurred during the year.

In regards to your 2nd query, yes ur contention is absolutely correct Capital gain included capital Loss.

Right, in the Law, where there is Income/Gain, it shall include negative Income/gain. 

Hi Paresh,

As Mr. Ritesh Told you there is not need to pay FBT as there is no expenditure because you cannot claim depreciation as the Gross block of assets become nil.

Regards

Vijay Kumar

 Dear friends, my view will be 

1. As the asset is the block is transferred during the period, the assessee can claim the capital gain loss.

2. As far as FBT is concerned

 a) though the asset is not there as at the end of the period, FBT shall be payable on the running, running and maintenance of motor cars till the period car is used during the period.

 b) FBT on depreciation need to be paid as there the capital gain would be calculated on basis of the net wdv block (charges depreciation till the period of sale). Hence i believe that need to be paid.

Any way i will quote the relevant section tomorrow.

 Dear friends, my view will be 

1. As the asset is the block is transferred during the period, the assessee can claim the capital gain loss.

2. As far as FBT is concerned

 a) though the asset is not there as at the end of the period, FBT shall be payable on the running, running and maintenance of motor cars till the period car is used during the period.

 b) FBT on depreciation need to be paid as there the capital gain would be calculated on basis of the net wdv block (charges depreciation till the period of sale). Hence i believe that need to be paid.

Any way i will quote the relevant section tomorrow.

Dear Mr. Vrnada,

I am not agree with you on the 2 (b) point put by you  because FBT will be calculated on the amount of depreciation and depreciation can't be claimed as the Gross block of Aseets is NIL.

My question is this if there is no amount of Depreciation then how will calculate FBT on that. Please Clarify.

Regards,

Vijay Kumar