Employee Car Lease - treatment in the books of accounts

Practise 1619 views 1 replies

Hello colleagues ; 

My query is regarding the treatment of Car lease rentals paid by the Company on behalf of the employees where such lease rentals are collected from the employees as dedcutions from Salaries. 

Background :

  • Employer provides car lease program for employees 
  • There is a car lease vendor and agreement is tripartite with the lease company. 
  • The car lease rentals are as per the car lease provider and is deducted each month from the salary of the employee. 
  • They are then paid to the Car lease provider (less certain amount of TDS). 
  • The car lease rentals paid and collected are inclusive of service tax. 
  • The invoice is collective raised on the company each month by the car lease provider. 

My Query is : 

  • Is the car lease rent paid by the company an deductible expense for P and L at all?

Let me know, 

Roopa

Replies (1)

It has tax relief upto 30%.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details