04 September 2007
hi friends my query is: a company's car met with an accident and the company lodged a claim with the insurance company. however the insurance company has not accepted the claim in full. the company has written off the balance amount to profit and loss account under the head repairs & maintenance - vehicle. is the company liable to pay FBT on this amount.
04 September 2007
hello, thanks for the reply. but i failed to mention that the car met with minor accident and it is not total loss. the insurance company reimbursed only about 75 percent of the amount incurred by the company on repairs of the car. and the company has debited the remaining 25 percent to profit and loss account. so how in this situation will the reply be to my query. whether the company has to pay FBT on this 25 percent.