27 November 2007
Whether Pre–Operative Expenses incurred for the Projects yet to be capitalized liable for Fringe Benefits Tax since POP Expenses claim as Revenue in IT & in Corporate Books it is added to the Cost of Assets which is amortized along with the cost of Assets over the period of its life on which we are not paying FBT at present.
27 November 2007
THE ISSUE OF FBT ON PREOPERATIVE EXPENSES IS SETTLED BY THE CIRCULAR NO 8/2005 DT.29 TH AUGUST 2005 , WHICH SAYS THAT ANY EXP. INCURRED FOR THE PURPOSE REFERRED IN CLAUSES (A) to (P) OF SEC 115 WB(2) IS LIABLE TO FBT IRRESPECTIVE WHETHER SUCH EXP. IS INCURRED PRIOR TO COMMENCEMENT OF THE BUSINESS OR THEEAFTER. R.V.RAO