car exps

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 03 October 2007

Yes he has to pay FBT. FBT is on expenses and not on employees, however there should be at least one employee in that organisation

CA Bishnu Agarwal (Chartered Accountants) (55 Points)
Replied 03 October 2007

hi, the applicability of FBT is not for individual .. so there will not be any fbt on any of expenses incurred by an individual firm

(Guest)

I THINK MR. BISHNU IS RIGHT BCOZ FBT IS NOT APPLICABLE ON PROP. FIRM.

Rachana Gadage (Account Executive) (136 Points)
Replied 04 October 2007

Yes, FBT is applicable

ravi sankar (Chartered Accountant) (157 Points)
Replied 05 October 2007

FBT is on expenses incurred on behalf of employees. this is what I have understood. If mortor car is used by the proprietor for his bussiness and not use by the employee, will there be any FBT. Hope I am putting my ? clear. quote: 1)any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees); 2)The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has, in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains) incurred any expense on, Question: (1) should there be a necessity to incur exp on employees "or" (2) with or without employees, will the expenses classified shall be deemed to liable for FBT. Hope I am putting my ? clear. Thanks

ravi sankar (Chartered Accountant) (157 Points)
Replied 05 October 2007

FBT is on expenses incurred on behalf of employees. this is what I have understood. If mortor car is used by the proprietor for his bussiness and not use by the employee, will there be any FBT. Hope I am putting my ? clear. quote: 1)any privilege, service, facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees); 2)The fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has, in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains) incurred any expense on, Question: (1) should there be a necessity to incur exp on employees "or" (2) with or without employees, will the expenses classified shall be deemed to liable for FBT. Hope I am putting my ? clear. Thanks

sanjeev (Manager- Accounts/Tax/Finance) (229 Points)
Replied 06 October 2007

Because proprietorship concerns are exempted from the net of FBT hence there is no need to pay FBT on any kind of expenses incurred by him.

satynarayan tiwari (Professional) (78 Points)
Replied 07 October 2007

If the firm is the proprietorship firm then there is no question of FBT

CA Bishnu Agarwal (Chartered Accountants) (55 Points)
Replied 08 October 2007

Hi Friends, FBT Provison is not applicalble for proprietorship concern. Sec(115) has defined the applicability of FBT

CA Bishnu Agarwal (Chartered Accountants) (55 Points)
Replied 08 October 2007

Hi friends i am posting the definitions of fringe benefit tax under 115W. In this Chapter, unless the context otherwise requires, (a) employer means, (i) a company; (ii) a firm; 86[(iii) an association of persons or a body of individuals, whether incorporated or not;] (iv) a local authority; and (v) every artificial juridical person, not falling within any of the preceding sub-clauses: 87[Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall not be deemed to be an employer for the purposes of this Chapter;] (b) fringe benefit tax or tax means the tax chargeable under section 115WA

Anand (481 Points)
Replied 08 October 2007

FBT not applicable to individual doing business in a proprietary form.

ravi sankar (Chartered Accountant) (157 Points)
Replied 08 October 2007

Hai you have fixed the crux of the matter. Thus a proprietory concern need not pay FBT even if employees are there. thanks ravisankar

ravi sankar (Chartered Accountant) (157 Points)
Replied 08 October 2007

Hai you have fixed the crux of the matter. Thus a proprietory concern need not pay FBT even if employees are there. thanks ravisankar

CA Vijay V Kodmur (Practicing ) (103 Points)
Replied 09 October 2008

Hi Friend,

Wheather Insurance on Car is allowed in the Year of Payment

If Insurance on Car is paid on 1-2-2008 of Rs.12000/- [For period 1-2-2008 To 31-1-2009] wheather it is fully deductible in the year of payment wheather proportinetly deductable in the year 2007-08 2000 and in 2008-09 10000/-

please clarify

Originally posted by :sanjeev
"	Because proprietorship concerns are exempted from the net of FBT hence there is no need to pay FBT on any kind of expenses incurred by him.	"