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FBT on Depreciation whether as per IT Act or Company Act ?

Valerian Dsouza (Manager Audit & Taxation) (413 Points)

13 March 2008

We are a Private Limited Company have to pay FBT on Depreciation of Motor Car.

Whether Depreciation charged as per Company Act or IT Act is liable for payment of FBT ?

Depreciation is charged annually. Whether we have to divide the same quarterly and pay FBT on the same or the FBT liability is on the last quarter of a financial year ?

Kindly advice me, I shall be very grateful to you.

Regards,

Valerian D'Souza

Manager Accounts

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19 Replies

(Guest)

its on IT Act

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amit rustagi (ACA) (51 Points)
Replied 13 March 2008

its on IT ACt

Megha S (CA Student) (64 Points)
Replied 13 March 2008

divide it for four quarter and pay advance tax based on that.

(Guest)

Pl... refer circular no: 8/2005 - As per this the depreciation on motor car or any other asset for the purposes of frindge benefit tax shall be the depreciation computed under the provisions of section 32 of Income Tax Act. Secondly, in the same circular it has been further clarified that for the purposes of payment of advance tax on fringe benefit tax, depreciation should be taken on a pro rata basis for payment of advance FBT tax.

CA. BIJENDER KR. BANSAL (ACA, B.COM) (8148 Points)
Replied 14 March 2008

FOR FBT PURPOSE, DEPREICATION AS PER INCOME TAX IS TAKEN PROPRAINATELY. I.E TOTAL DEP DIVIDED BY 4 I.E CALUATED QUARTER WISE.

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Gupta B Gullapudi (PRACTICING CA) (42 Points)
Replied 14 March 2008

(Guest)

Depreciation on Motor Car for the purpose of FBT calculation charged as per IT Act ,though it is an advance Tax so Depriciation should be pay on quarterly basis

Samir (Chartered Accountant) (145 Points)
Replied 14 March 2008

As per IT Act as laid down in Sec.32. While computing quarterly depreciation, the total depreciation for the year (calculated on the basis of additions till that date) shall be divided by 4 and accordingly, whatever figure is arrived shall be subject to 20% FB value.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 14 March 2008

Based on IT Dep.on quarter basis.

(Guest)

Thank you all so much for the valued information on FBT

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(Guest)

Dear FBT on Depreciation as per income tax rate provided to Act 1961 that the depreciation will charged on Motor car as per income tax act in pricribed rate in that case i inform you take depreciation rate of income tax act Bye Durga nand mishra

(Guest)

as per COMPANY DEPRECIATION CHART

vaishali (service) (51 Points)
Replied 07 October 2008

what is last date for CPT registration for DEc 2008 CPT? I heard it is 6th Oct 2008

Is there any chances that the due date will get extended if yes

kindly tell me the last due date

Rohit Khare (student) (111 Points)
Replied 07 October 2008

For the purpose of FBT, depreciation on motor cars should be calculated as per Income Tax Act Section 32 and be divided over 4 quarters in order to pay Advance Tax.