Perquisite value tax

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This query is : Resolved

SUNIL DUTT (Querist)

30 April 2012 If an employee left the ofganisation on 30.03.2012. The organisation sell a car at concessional rate to that employee in financial year 2012-2013. Will it be count as perquisite to that employee.

Thanks & Regards.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 April 2012 Let the Organisation is selling today a car to Mr Ex Employee for just Rs. 60000/- which is having the WDV as on 01.04.2012 of Rs. 1,00,000/-.
.
The Organisation may record the transaction
in the following manner-

The Car account is being credited by Rs 60000 and balance 40000/ has been booked as
STCL on sale of Car.
.
In the above situation Mr Ex-Employee is not required to show the perquisite. He may simply treat it as a good bargain.
.
Alternatively -The Organisation charges certain amount towards Perquisites out of
40000/-, then , Ex-employee has also to show the Perquisite under the head Salary Income.
.
The Perquisite may be computed by applying Reducing Method @ 20% for each completed years.
.

Jai Bajaj

Jai Bajaj (Expert)

30 April 2012 Totally agree with CA Paras Bafna.

It depends upon the company what kind of treatment it is giving in its books.
If at the time of sell the employee is working with the organisation and company treated some of amount as perquisite then it will show the in salary certificate also.

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