01 July 2009
Our company given the assets like car,laptops,mobile etc etc to employees now we are going to make a policy that if any body used assets for more than three year than he can buy the assets.
Now i want to know is there is any tax implication or any other legal issue comes under this thransfer.
Also help me to determine to transfer price i.e. on which price WDV as per IT or WDV as per Company Law or Market price or any other manner.
What is industries partice on this type transaction ?
01 July 2009
u can transfer it at any price but as per IT Act difference between transfer price and wdv would be chargeable to tax in company hand. for taxability in hand of employees , value of assets are determine after reducing certain percentage of cost of assets as mention under head salary. senior are requested to correct me, if i m wrong.
CAclubindia
