FBT - Is it required to be paid when not claimed for Income
This query is : Resolved
14 October 2008
FBT is not a tax on Income
FBT is a tax on expenses
Is FBT applicable when some one is not claiming those expenses at all?
Two scenarios:
01. When a company's total income is exempted, the company can prepare memo of Income by disallowing the expenses subject to FBT and arrive at profit / loss. Suich profit is escalated to the extent of expenses subject to FBT. However, the profit is not taxable, since exempted.
02. When a company's Carry Forward Loss is huge and by not claming expenses subject to FBT the profit can be arrived.
Since this action doesn't have any impact on Book Profit, the status of MAT liability may not undergo any alteration.
Please clarify
FBT is a tax on expenses
Is FBT applicable when some one is not claiming those expenses at all?
Two scenarios:
01. When a company's total income is exempted, the company can prepare memo of Income by disallowing the expenses subject to FBT and arrive at profit / loss. Suich profit is escalated to the extent of expenses subject to FBT. However, the profit is not taxable, since exempted.
02. When a company's Carry Forward Loss is huge and by not claming expenses subject to FBT the profit can be arrived.
Since this action doesn't have any impact on Book Profit, the status of MAT liability may not undergo any alteration.
Please clarify
14 October 2008
If the expenditure is booked FBT provisions attract. Memo of income and c/fd loss etc,as you said in the query,has no relavance for determining the taxability of FBT.
15 October 2008
Expenditure is debited to P & L, but not for Income Tax purpose.
Many of the expenses brought under the FBT net are satisfying even 1% of the basic meaning of FB. When the government (welfare state) is travelling beyond (eg.sales promotion - what benefit employees are getting?)the principle and the FM is not keep up his budget speech, I strongly feel that professionals should find some way to teach lesson.
Is there any way that expenses are made, payment made from company account. But not accounted for P & L as well for IT purpose.
Many of the expenses brought under the FBT net are satisfying even 1% of the basic meaning of FB. When the government (welfare state) is travelling beyond (eg.sales promotion - what benefit employees are getting?)the principle and the FM is not keep up his budget speech, I strongly feel that professionals should find some way to teach lesson.
Is there any way that expenses are made, payment made from company account. But not accounted for P & L as well for IT purpose.
15 October 2008
Expenditure is debited to P & L, but not for Income Tax purpose.
Many of the expenses brought under the FBT net are satisfying even 1% of the basic meaning of FB. When the government (welfare state) is travelling beyond (eg.sales promotion - what benefit employees are getting?)the principle and the FM is not keep up his budget speech, I strongly feel that professionals should find some way to teach lesson.
Is there any way that expenses are made, payment made from company account. But not accounted for P & L as well for IT purpose.
Many of the expenses brought under the FBT net are satisfying even 1% of the basic meaning of FB. When the government (welfare state) is travelling beyond (eg.sales promotion - what benefit employees are getting?)the principle and the FM is not keep up his budget speech, I strongly feel that professionals should find some way to teach lesson.
Is there any way that expenses are made, payment made from company account. But not accounted for P & L as well for IT purpose.
20 November 2008
FBT will be attracted in both the scenarios mentioned above. Once expenditure is incurred, FBT will have to be paid.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
