Whether capital expenditure falling within the categories specified in section 115WB (2) would be covered in the scope of fringe benefits?
Expenditure on any capital asset in respect of which depreciation is allowable u/s 32 of the Income-tax Act does not fall within the scope of sub -section (2) of section 115WB of the Income-tax Act since the proximate objective of incurring such expenditure is the acquisition of a capital asset. Therefore, such expenditure is not included in reckoning the value of fringe benefits [except depreciation on motor cars or aircrafts referred to in clauses (H) and (I) of sub-section (2) of section 115WB] and is not liable to FBT. 90. Whether expenditure for use of telephone includes (i) expenditure for use of telephone installed in the office and (ii) payment of telephone (including mobile phone) bills in the name of the company directly made by the company? In terms of the provisions of clause (J) of sub-section (2) of section 115WB, expenditure incurred or payment made for the purposes of use of telephone (including mobile phone) other than expenditure on leased telephone lines is liable to
Related Questions
- Whether pre-operative expenses falling within the categories specified in section 115WB (2) would be covered in the scope of fringe benefits?
- Whether capital expenditure falling within the categories specified in section 115WB (2) would be covered in the scope of fringe benefits?
- What is the difference between capital expenditure and revenue expenditure?
