Dear sir, One of our client running a travell agency, they have 2 motor cars and they are running on hire, also they are taking on hire outside vehicles on hire for running on hire. They are meeting the running expenses of these vehicles and hire charges paying for them . My question is whether they have to pay FBT on hire charges paid to outside taxies and their running expenses
FBT is charged on the expenses incurred by company towards the running & maintenance of its own vehicle. hence amount paid to outside company as hiring charges shall not be liable to FBT.
regards,
ratan
As per the language of Act, FBT is payable on Running and Maintenance Expenses on Motor Car. So in my openion you will have to pay FBT on all expenses incurred on Motor Car whether owned or hired.
FBT is applicable on Running and maintenace of Own car hire
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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