Allowable expenditure u/s 37(1)

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CA ROHIT GUPTA (Querist)
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01 June 2012 The company owned a motor car which was provided to employee. The employee engage a driver for running of car. The company reimbursed such driver salary to employee. Whether such driver salary paid to employee can be charged by employee its Maintainence & repair of Motor car even such driver is not in employment of company. and such expenditure is allowable or not.

jay shah

jay shah (Expert)
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01 June 2012 Sir,
Per my view if car is provided along with driver then company can claim expenditure of drivers salary.
IF not then drivers salary will be termed as perquisite to employee.under section 17(2)(iv) or 17(2)(iii)-
Should you desire any clerification feel free to ask.

CA ROHIT GUPTA

CA ROHIT GUPTA (Querist)
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01 June 2012 Sir,
The ownership of car is of company. The company charged all running expenses like fuel etc. in his profit & loss a/c. Here in circumstances, Driver is not appointed by company but driver is hired/employed by employee himself. company only reimburse his salary to his employee. Can company claim the expenditure of such driver salary in his profit & loss & under which head it claim such expense.

CA Harish Suwalka

CA Harish Suwalka (Expert)
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03 June 2012 dear rohit... for the employee it may be perquisite or allowance (depends on conditions)..

but as your query regarding the company... it is deductible u/s 37(1)

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