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FBT of Past Years

CA CS Amit Borade (Chief Accountant) (2828 Points)

14 July 2010

Hi Friends

Since FBT is abolished whether the amounts of Advance Tax FBT & Provision for FBT lying in books for past years to be closed?

Thanks

Amit B....... Keep Smiling .. ;-)

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4 Replies

Amir (Learner) (4016 Points)
Replied 14 July 2010

Hi bro,

Looking cool in sunglasses......:)

Coming to ur doubt -

Abolition of FBT does not give any indication for its treatment in respect of earlier years in the books since the same is abolished going forward i:e on prospective basis and not retrospectively.

Since FBT provision and Advance FBT pertains to the period for which FBT shall remain valid the same should be accounted for as the way it has been done before its abolition. ( In general - if assessments or their time limits are over then the same can be adjusted)

The only exception to the above is April-June 2009, in this case the quarterly provision needs to be reversed in the Books since this was the retrospective amendment in that sense.

CA CS Amit Borade (Chief Accountant) (2828 Points)
Replied 14 July 2010

Hey Amir Thanks a ton..

But again one ques I have to ask u..

In my case assessment for AY2007-08 has been completed for Income tax, but not for FBt . Whether FBT assessment separately happen?

Thanks

Amir (Learner) (4016 Points)
Replied 14 July 2010

Bhai,

Sec 115WE provides for a separate assessment procedure in case of FBT- exactly the same as we have for Income Tax.

Since the limit limit for issue of notice is over now the same can be adjusted especially in view of the fact that Income Tax assessment for the same year has already been completed.

You may not be interested in knowing but interestingly the very reason for abolition of FBT was its - "Administration cost" .....So don't worry now AO will not going to open the FBT assessment.