03 October 2007
UNDER SEC 115WB(2)(H),LEASE RENT OF MOTOR CAR IS TAXABLE EXCEPT WHEN IF IT IS INCURRED ON RUNNING AND MAINTENANCE OF DELIVERY VANS,DISPLAY VANS,AMBULANCES,TRUCKS,LORRIES,,BUSES,TRACTORS,TEMPOS. R.V.RAO
04 October 2007
Whether FBT is payable on any rent paid or payable for hiring or leasing of motor-cars? 82. Rent paid or payable for an operating lease of a motor-car is expenditure for the purposes of conveyance, tour and travel. Accordingly, it shall be treated as expenditure within the scope of clause (F) of sub-section (2) of section 115WB. However, rent paid or payable for a financial lease of a motor-car is in the nature of expenditure on running or maintaining of a motor-car. Therefore, such rent shall be treated as expenditure within the scope of clause (1) of sub-section (2) of section 115WB.
This has been issued along with circular No 8/2005
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