FOR A CAR WHICH IS IN THE NAME OF THE COMPANY ,THE DRIVERS SALARY,REPAIRS,FUEL ETC..ARE CLAIMED AS DEDUCTIBLE EXP. FOR INCOME TAX PURPOSE BY THE CO. AND THE CO. IS LIABLE TO PAY FBT ONLY IF THE CAR IS ALLOTTED/EARMARKED TO ANY PARTICULAR EMPLOYEE AS PER TERMS OF HIS / HER EMPLOYMENT. IF THE CAR IS IN CO. NAME AND NOT ALLOTTED IN THE NAME OF ANY PARTICULAR EMPLOYEE, THEN THERE IS NO FBT.
TAX FOR EMPLOYEE:
AS FOR CAR PROVIDED TO AN EMPLOYEE , THE DRIVER SALARY, REPAIRS,FUEL ETC..ARE NOT TREATED AS PERQUISITES AND NOT TAXABLE IN THE HANDS OF THE EMPLOYEE (EVEN IF HE /SHE IS A SPECIFIED EMPLOYEE LIKE DIRECTOR EMLPLOYEE OR SHAREHOLDER WITH MORE THAN 20 % SHARES OR VOTING RIGHTS OR EMPLOYEES DRAWING SALARY OF MORE THAN RS 50,000/- P.M.) R.V.RAO
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