05 May 2008
My Employer is a Public Ltd. company enagaged in pre-construction stage activity to set up a power plant. An opinoin was taken from the consultant on the issue of applicability of FBT. It has advised that company is doing activity of construction stage, and no business activity is being done. hnce, Company would not be liable to pay FBT.
Kindly advice , whether we are liable for FBT or not.
05 May 2008
THE BASIS OF FBT IS EMPLOYER AND EMPLOYEE RELATIONSHIP. IF THERE IS NO EMPLOYEE, THERE IS NO FBT. WHEN THERE IS EVEN ONE EMPLYEE ,AND ANY DIRECT OR INDIRECT BENEFIT PROVIDED UNDER SEC 115W,ATTRACTS FBT. EVEN IF THERE IS NO INCOME CHARGEABLE TO TAX, FOR THE CO. STILL FBT IS PAYABLE. R.V.RAO
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