Employee Car Lease - treatment in the books of accounts

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%.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details