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FBT on Car Insurance

Rakesh sharma (chartered accountants) (43 Points)

18 August 2008

Dear all,

I want to know that the Insurance of Cars is to be included as vehicle running & maintenance charges for FBT.

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9 Replies

CA S Sundararajan (CAO) (536 Points)
Replied 18 August 2008

I referred the provisions, hope there is no applicbility of FBT on Veh.Insurance.

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CA Vibhor Gupta (CA) (60 Points)
Replied 18 August 2008

FBT IS APPLICABLE ON CAR INSURANCE.

Yashpreet (68 Points)
Replied 19 August 2008

Originally posted by :Rakesh sharma
"	Dear all, I want to know that the Insurance of Cars is to be included as vehicle running & maintenance charges for FBT.	"

All the expenses related to car r liable to fbt

Devendra Goyal (Service) (24 Points)
Replied 19 August 2008

Dear Mr.Rakesh Sharma,

Insurance Expenses related to car are comes under Running & Maintenance expenses of Car so it should be included in Expenses Lible of Fringe Benifit Tax.

C.A.Devendra Goyal

CA Kamal Jhawar (service) (46 Points)
Replied 19 August 2008

Heelloo Ist insuance premium is capitalised n after dat all d premium r shown as expenses, n den dey r liable for FBT

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sarabjeet (Team Lead) (34 Points)
Replied 09 September 2009

Hi
Well Mr.Rakesh I have one online tool which I think help you in this matter plz check this out. https://www.simpleinsurance.co.in/

jinde (payroll) (26 Points)
Replied 30 September 2009

Hi All,

I want to know wheather the IT dept, has released the new rules on perquisite on car claims like petrol and other maintanence for self owned cars and company leased vehicle instead of FBT.

Let me know the recent updation on this.

CA MOHIT GUPTA (PRACTICE) (49 Points)
Replied 30 September 2009

Dear All,

Its mandatory to get the new car insured before leaving the showroom and the capitalised value of car includes the amount of First Insurance Premium. Further payment of Premium is treated as revenue expenditure, so its liable for FBT.