FBT ON PREPAID EXP.

The liability to FBT will be on the basis of what you have to charge to P & L

Agree with Shyam..

As per Circular No. 8/2005, dated August 29, 2005, FBT would be payable in the year in which the expenses are incurred. Therefore, FBT would not be payable on payment of advance towards expenses to be incurred in the future.

Hence FBT is not payable on prepaid expenses..

Hey guys...reviewing the same point again...

if FBT is not payable on prepaid expenses...the column 'ACCOUNTED FOR IN THE BALANCE SHEET' is for what figures..?

Please clarify as i have observed in usual practice FBT is being paid on prepaid expenses also i.e. on payment basis... 

Sunali,

FBT is paid on the expenditure charged to P& L account and not on prepaid expenses.

I would like to clarify your point regarding payment of FBT on payment basis:-

Those assessees who follows the cash basis of accounting are required to pay FBT on expenditure on payment basis.

Nikunj Rathi

plz send me fbt rate on expenses

it is available in share files section