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FBT on scooter maintenance

sravan (Audit & Compliance officer ) (66 Points)

19 October 2009

Is scooter maintenance a fbtialble expense?

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6 Replies

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 20 October 2009

Yea...as it cmprises one of the assets and moreover depreciation is evn claimable on such vehicle.

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Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 20 October 2009

FBT will be applicable on expenses incured on vehicle running & maintenance as well as depreciation on vehicles. But w.e.f F.Y. 2009-10, FBT is abolished.

regards,

ratan

(Guest)

Originally posted by :Ratan Deep Saxena
"	FBT will be applicable on expenses incured on vehicle running & maintenance as well as depreciation on vehicles. But w.e.f F.Y. 2009-10, FBT is abolished. regards, ratan	"

ya i agree

Satish Makam (Asst. Manager - Accounts) (294 Points)
Replied 22 October 2009

Maintenance expenses of two wheeler is not liable to FBT. scooter is a two wheeler, so maintenance is not a fbtialble expense. only four wheeler's maintenace is fbtiable expens

Here, four wheeler means only motor car and nothingelse. (ref: taxmanns direct taxes ready reckoner 32 edition page no. A-392)

CA Suri Kota (Assistant Manager @ EY) (955 Points)
Replied 22 October 2009

Satish............is it any where given in the definition of vehicle.....as u said only applicable to forur wheelres only........? If so.....kindly let me know about that............

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FATEMA (CHARTERED ACCOUNTANT) (719 Points)
Replied 27 October 2009

Scooter maintenance is not liable to FBT.

As per section 115WB (2)(H) of the income tax act 1961, Expenditure on repair of motor car,running of motor car including fuel,maintenance expenditue of motor car,income tax depreciation on motor car, lease rent of motor car, salary paid to the drivers of motor car,rent of garage of motor car and interest on loan taken to purchase motor car is liable to FBT.