Perquiste computation
This query is : Resolved
01 February 2012
As per revised Income Tax rules in 2009, if Employer sells the company used Car "at a nominal price" to Employee, then there is perquisite value computation viz.20% per completed year depreciation minus price collected by employee is taxable perquisite value.
Can you please provide me the expert advice, if the Employer sells the company used Car to Employee at "market value" as determined by the authorised Car dealers of the said car, whether Perquisite value will computed as above.
Mr. Vivek Mehta's response, appears to be without considering the fact that, the Car was sold at "Market Price" not at "nominal price". I am looking for "applicability of this provision if the Car is sold at "Market value"
Can you please provide me the expert advice, if the Employer sells the company used Car to Employee at "market value" as determined by the authorised Car dealers of the said car, whether Perquisite value will computed as above.
Mr. Vivek Mehta's response, appears to be without considering the fact that, the Car was sold at "Market Price" not at "nominal price". I am looking for "applicability of this provision if the Car is sold at "Market value"
01 February 2012
Yes as per income tax act and as per perquisite valuation rule there is no way where the things can't be left...the difference will always be chargalbe to tax and valuation shall be done as per given rules only...
01 February 2012
No in such a situation, there is no question of any perquisite.
However proper documentation should be there suggesting that proper quotations/prices from uncontrolled market were referred to, while deciding the transfer price.
The above provision was brought in because the companies have a policy to give used cars to employees, say after 3 years of use at a nominal price (say 10,000). In such situation perquisite arises.
However, when there is no real intention to offer any benefit to employees, the provisions should not get attracted.
However proper documentation should be there suggesting that proper quotations/prices from uncontrolled market were referred to, while deciding the transfer price.
The above provision was brought in because the companies have a policy to give used cars to employees, say after 3 years of use at a nominal price (say 10,000). In such situation perquisite arises.
However, when there is no real intention to offer any benefit to employees, the provisions should not get attracted.
01 February 2012
No in such a situation, there is no question of any perquisite.
However proper documentation should be there suggesting that proper quotations/prices from uncontrolled market were referred to, while deciding the transfer price.
The above provision was brought in because the companies have a policy to give used cars to employees, say after 3 years of use at a nominal price (say 10,000). In such situation perquisite arises.
However, when there is no real intention to offer any benefit to employees, the provisions should not get attracted.
However proper documentation should be there suggesting that proper quotations/prices from uncontrolled market were referred to, while deciding the transfer price.
The above provision was brought in because the companies have a policy to give used cars to employees, say after 3 years of use at a nominal price (say 10,000). In such situation perquisite arises.
However, when there is no real intention to offer any benefit to employees, the provisions should not get attracted.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reporting Income under Section 44ADA
- Itr 1 processing
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR 1: Details for showing Exempt Income
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- ITR selection for salaries and capital gain less than L
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
