FBT calc. while exps r apportioned to subsidiary
This query is : Resolved
25 January 2008
Pls. clarify this, (with ref to Sec.115W)
There are 2 companies say A & B. Let B is subsidiary of A. Now a part of exps incurred by A is apportioned to B, as it is expended for B.
While calculating FBT of both A & B, where is the apportioned FBTable exps are taxed…? I.e. in former or in latter…?
re,
Dear one,
Arun Dongre
There are 2 companies say A & B. Let B is subsidiary of A. Now a part of exps incurred by A is apportioned to B, as it is expended for B.
While calculating FBT of both A & B, where is the apportioned FBTable exps are taxed…? I.e. in former or in latter…?
re,
Dear one,
Arun Dongre
25 January 2008
As compay A incurrs the expenditure, it has to pay FBT. When it apportions the expenditure and raises debit note on company B, in respect of the apportioned share of expenditure (including the FBT), it has to give the split details of actual expenditure apportioned and the FBT apportioned.
25 January 2008
So we've to calculate FBT in A co.
If there any sec ref. supporting ur words?
Pls reffer if there is....
If there any sec ref. supporting ur words?
Pls reffer if there is....
25 January 2008
You also have an alternative as stated in the circular No. 8/2005-FAQs. Q No.33:
The company A and B after sharing the expenditure between themselves, pay FBT on their respective shares.(But problem can arise if company B does not have any employees, when you may have to go to the first alternative).
The idea in both alternatives is that FBT should not be omitted to be paid when it is due.
The company A and B after sharing the expenditure between themselves, pay FBT on their respective shares.(But problem can arise if company B does not have any employees, when you may have to go to the first alternative).
The idea in both alternatives is that FBT should not be omitted to be paid when it is due.
06 October 2008
only exp which is apportioned to each co is liable to fbt.
refer circular no 8/2005
refer circular no 8/2005
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