Dear All,
We want to introduce Car Scheme as part of Employee Retention Program. Please let me know if this is correct,
1. Company buys a Car
2. Employee will use it for personal purposes
3. EMI's @ subsidised interest rate will be deducted form the employee salary every month
4. At the end of loan period Car will be sold to employee as per depreciated value.
I wish to know,
1. Is this the way the car scheme works or any alternative ways
2. whether the EMI's deducted from employee salary will be tax free
3. At the time of transfer of car to employee name, whether it should be treated as Perquisite and is it taxable?
CAclubindia
