FBT dues adjustment against IT refund

Hi Mr Venkat,

>> No, FBT cannot be adjusted with income tax. FBT stands apart from> MAT and Corporate Dividend Tax in that it refuses to let itself be> adjusted with the assessee's regular income tax.>> If you look at Section 115-O relating to the DDT, it opens withthe> words "notwithstanding anything contained in any other PROVISIONof> this Act"; also Section 115JB levying the MAT opens with the exact> same words. So DDT and MAT can be adjusted against advance income> tax or TDS. But His Holiness the FBT introduces itself in Section> 115WA by using the words "in addition to the income tax charged> under THIS ACT". There, it sets itself apart from its poor cousins---> Income Tax, DDT and MAT.>> Although Section 115WA goes on to describe the FBT as "additional> income tax", the fact remains that FBT is a distinct levy, whichhas> nothing to do with income tax an assessee pays on its income.> Actually, calling it an income tax is a misnomer; it is an> expenditure tax to be precise! The FBT provisions are an Actwithin> an Act—a complete code in itself. I think the government couldwell> have drafted a separate legislation for it!>> Also take a look at ITR-6. FBT is dealt with in a separate section> called Part C of the return form. A look at the rows there,> particularly point 7 and 8, suffices to dispel any doubts that the> non-adjustment of FBT with advance income tax/TDS.>> So you'd have to shell out interest on late deposit of FBT u/s115WJ> (3).>>

Thanks,>> CA Sanjeev Bedi

>>> --- In http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/post?postID=NbBKmN8NNw6hM_tV3Ipa8kYQSBsOknW6ooYS6twlfyKHggPKdRfrIdC3OSd7kFGinXo4gSPxUAWJTKTLu6w7qQJxOhP64CUjRlg, "venkataraman k"> wrote:> >> > Dear members> > We are in the process of filing the IT Return of a consultancy> company. The> > Assessee is entitled for huge refund due to TDS> > made on professional charges. the company has not paid any FBT> till now.> > Now my question is whether we can adjust the FBT dues againstthe> IT refund> > which is substantial. We have seen many assessents wherein the> Department is> > adjusting the refund and dues of different taxes in theirorders.> We all> > know how difficult it is to get the refund from the department.> Even if FBT> > is not paid and tomorrow the FBT asst. is completed and penaltyif> any is> > going to be levied,then the total would be much less than the> IT Refund.> > I request the members to express thier view.

> > venkatraman> >>