Fixed assets Purchase as part of relocation
This query is : Resolved
05 August 2010
Fact:
If an Employee Purchase any Fixed for Personal Use, and if company agrees to pay as part of Relocation Exp.
Query:
Will company able to treat it as Assets or Expenses it off as a part of Relocation Exp?
If an Employee Purchase any Fixed for Personal Use, and if company agrees to pay as part of Relocation Exp.
Query:
Will company able to treat it as Assets or Expenses it off as a part of Relocation Exp?
05 August 2010
If the assets are purchased in the name of the employee & Co. bears the expense:
a) The Co. can charge it off as expense in its books.
b) The entire value of such assets will be added to the income of the employee & taxed as perquisites.
If the assets are purchased in the name of the co. & given to employee for personal use:
a) The assets will be capitalised in the books of the Co. on which it will be entitled to claim depreciation.
b) Based on the nature of the asset, a fixed percentage of the value of asset will be added to the income of the employee every year & taxed as perquisite.
a) The Co. can charge it off as expense in its books.
b) The entire value of such assets will be added to the income of the employee & taxed as perquisites.
If the assets are purchased in the name of the co. & given to employee for personal use:
a) The assets will be capitalised in the books of the Co. on which it will be entitled to claim depreciation.
b) Based on the nature of the asset, a fixed percentage of the value of asset will be added to the income of the employee every year & taxed as perquisite.
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