24 September 2008
Can FBT be adgusted against Tax refund
TNG , a Consultancy Company , has to pay FBT of Rs.10 lkhs for 2008-09 Fin Yr. and it has not paid any amount till date and all the amount is due. TNG’s IT liability is Rs.30 lkhs and has TDS certificates worth Rs.100 lkhs .
As TNG is having funds crunch , can it make part payment of say Rs.2 lkhs now and pay the balance Rs.8 lkhs along with interest, by way of adjustment against refund due of Rs.70 lkhs, at the time of assessement.
(a) Will the assessement officer accept the FBT due along with interest up to the date of payment . Does he have the power to levy penalty.
(b) Will the return be accepted without payment of FBT.
CAclubindia
