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Query regarding "Fuel and Maintenance" component in CTC??


Hi

My company gives me the option of "Fuel and Maintenance" of upto Rs. 1,50,000/-  per annum in my CTC on showing proper bills every month, I can get this money reimbursed (as a part of CTC ofcourse) and this Rs.1,50,000/- is not taxable.  My questions are following:

1) They have deducted amount of Rs. 10,200/- as FBT @ 6.80%. Is this correct?

2) I gave them a bill(cash memo) of Rs. 13,500/-  from an authentic repair center which was just labour and denting work. But the bill didnt have  any CST or service tax number. My company rejected the bill on this ground. Are they correct about this, and if not, under what law ??

3) Going through topics on these websites only, can I give my insurance premium bill also under this category and get it reimbursed. ( under wat law) ??

4) Again, in the topics, there is provision for salary of the driver also. How can I get this reimbursement, as there will be no bill for this.

Any help would be appreciated, and if you can tell me the section and law also, so I can atleast say somehting to the company people.

Thanks

Gagandeep Bajaj

(Software Engineer)

 
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Chartered Accountant


1.FBT is levied on the co. It is not correct on the part of the company to deduct FBT from your account.

2.it depends on the companies view, weather to reimburse the labour charge or not. I think there is no law regaring this matter

3. and 4.It depends on the contract with you, if your contract has any clause which covers for insurance premium and driver's salary then you  can claim reimbursement.

 
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Hello Sanjay , thanks for the reply ....

regarding point 3 and 4, this is a provision given by government under some law(u/s.115WB(2)(H)),  about tax saving under  "Fuel and Maintenance" of a motor car.  Following is the exceprt taken from one of the posts on the website..

u/s.115WB(2)(H), It's mentioned that Repair, Running and Maintenance of Motor cars include:

Repairs, Fuel cost, Maintenance, Depreciation, Lease rent, Salary paid to drivers , rent of garage, and interest on loans to purchase a car.

There is no such contract with the company that I have, its  just i have this Rs.1,50,000/- as a part of my CTC. How do i show driver's salary as it is clearly mentioned in the law???

 

Thanks

Gagandeep Bajaj

 
Reply   
 
Chartered Accountant


section 115WB(2)(H) of Income Tax Act 1961, relates to chargeability of FBT on Repair, Running and Maintenance of Motor car. It is not at all related to your reimbursement.

 
Reply   
 
Financial Executive


Originally posted by :SANJAY VERMA
" section 115WB(2)(H) of Income Tax Act 1961, relates to chargeability of FBT on Repair, Running and Maintenance of Motor car. It is not at all related to your reimbursement. "


 

Hello Mr.Sanjay Verma!!

Thank You very much for your clarification sir.

Good Bye!!

 

 
Reply   
 
Accouts Executive


HI,

Can you guide me on fuel and maintenence reimbursement?

If car is used for office purpose but it's own by my father and my father gift this car to me. The ownership of the car is on my father name. Can I claim for fuel and maintenace in my salary?

Please do the needful.

 

REgards,

Prasad

prasad.patil @ lrn.com

 
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