22 May 2009
In case of one of my client, the car has been taken on lease by the company.The company is paying the lease rentals for the car. The same is being booked as car lease rentals in the books also. Now that car has been given to a specified employee, to whom the company reimburses petrol bills as well as reimburses the driver's salary who has been hired by employee himself?
Can any please suggest the tax treatment in the hands of employer as well as employee & FBT treatment also.
22 May 2009
Employer: This is a normal business expense and is charged to P/L A/c Employee: Terms of employment and remuneration will clarify the tax treatment in his/her hands FBT the whole thing qualifies for charging u/s 115W 2 F and u/s 115W 2 H
CAclubindia
