Whether FBT is payable on any rent paid or payable for hiring or leasing of motor cars?
Rent paid or payable for an operating lease of a motor-car is expenditure for the purposes of conveyance, tour and travel. Accordingly, it shall be treated as expenditure within the scope of clause (F) of sub -section (2) of section 115WB. However, rent paid or payable for a financial lease of a motor-car is in the nature of expenditure on running or maintaining of a motor-car. Therefore, such rent shall be treated as expenditure within the scope of clause (I) of sub-section (2) of section 115WB. 83. Whether the amount of depreciation on motor-car or any other asset should be the amount calculated as per the Income-tax Act or as per commercial accounting? If tax depreciation, how is the same to be computed in view of the concept of block of assets? The depreciation on the motor car or any other asset for the purposes of FBT shall be the depreciation computed under the provisions of section 32 of the Income-tax Act. Further, such amount shall be the whole of the amount of depreciation i
Related Questions
- Whether lease rent paid or payable for lease of accommodation for staff (including brokerage paid for the same), against a fixed sum recoverable from employees, is liable to FBT?
- Is a motor carrier exempt from driver qualification requirements by hiring a driver leasing company or temporary help service?
- Whether FBT is payable on any rent paid or payable for hiring or leasing of motor cars?
