Car provided to manager

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2015 Hello experts,
XYZ limited has provided car to it's sales manager with driver, and driver salary will be given directely to driver by company, however the car is being used for both business and personal purpose by manager and the car running exp. Including maintenance charges will be incurred by manager and later will be reimburse by company, plz clarify (1) weather company can claim the exp. Inrurred for car like fuel, maintenance and driver salary,
(2) what will be tax liability in the hand of manager on car provided by company,

Thanx & Regard
Manoj Gupta

Amol S Joglekar

Amol S Joglekar (Expert)
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30 October 2015 Assuming the car is owned by the Company..

please follow the link

https://www.tdstaxindia.com/2013/10/salary-calculation-of-perquisite-on.html

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2015 Dear sir, the manager is using this car for business purpose as well as in his personal use also, the company is reimburseing full car exp. to manager, however the manager salary is 60000 PM, do we need to add the 10% PA of car cost in his salary to deduct TDS, if not what is treatment for the same...

Amol S Joglekar

Amol S Joglekar (Expert)
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30 October 2015 If the motor car is owned by EMPLOYER
and the car is used partly for official purposes and partly for personal use

if the horsepower of the car is greater than 16, then Rs.2400 per month shall be taken as perquisite + Rs. 600 for driver.

if the horsepower of the car is less than 16, then Rs.1800 per month shall be taken as perquisite + Rs.600 for driver.

in short above 16HP....Rs. 3000 per month

below 16hp.... 2400 per month is to be added as perquisite and TDS be done accordingly.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2015 Dear sir, the link which you have send earlier above according to to that the driver salary should be 900 PM, instead of 600, plz correct me if i am wrong...

Amol S Joglekar

Amol S Joglekar (Expert)
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30 October 2015 no, you are absolutely right. Go as per 900 and not 600

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