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perquisite for car

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This query is : Resolved

Ravi Kumar Rajgaria (Querist)
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14 March 2009 Company provides a car to employee for his personal purpose. All the expenditure related to car will be borne by the employee. Is perquisite come in this case? if comes then how the same will be calculated?

If insurance of car is paid by company then will it is perquisite for the employee?

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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16 March 2009 Since the employer is a company who pays FBT U/s 115EB , employee is need not to pay tax (i.e. it is not perks)for

1. use of car
2. expenses of car paid by employer

3. insurance of car

how if the employer been a person not liable to pat fbt u/s 115(such as individual. government. political party etc)employee shall be liable , see rule 3 of income tax rule or send pm to me for further detail.

regards.!

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