Car Hire charges
This query is : Resolved
07 June 2010
To claim tax benefits, some of our employees are opting for Car hire charges. There is agreement between our company and car owner. This amount will be deducted from the employee salary and it will be paid to car owner after deducting the TDS. Is this correct way of doing? Any company follows this?
Please guide me.
Regards
Kumar.
Please guide me.
Regards
Kumar.
07 June 2010
My view, Your practice is correct only, since the hiring between car owner and company the payment to be made to the car owner and it is for employees and can be reduced from salary if it is company policy
07 June 2010
The car hire charges paid to contractor would be tax free in the hands of employees only if the said car is used for official purpose. Otherwise the full or part would be taxable perquisite as per valuation rules.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR selection for salaries and capital gain less than L
- NRE Interest Income applicability
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Query regarding TDS on EPFO Higher Pension Arrears*
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
