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FBT on Preoperative expenses

Vijay Sarathi H (PARTNER) (562 Points)

12 February 2008

Is FBT Applicable for Preoperative expenses (which includes telephone, staff welfare and travelling) made by a company?

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3 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 12 February 2008

For FBT, no distinction made between preoperative or post operative.

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Sagarika (CA) (41 Points)
Replied 12 February 2008

Yes,FBT is applicable on any expenditure incurred for the purposes covered in clauses (A) to (P) of Sub section (2) of 115WB.It doesn't matter whether exp are incurred prior or after the commencement of business. dear also see the Question No 16 of CBDTs Circullar No 8/2005 Dtd 29.08.2005.