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Gst on company car lease

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I see that GST has a provision to tax employee benefits which are not part of CTC (Reference - https://timesofindia.indiatimes.com/business/amenities-to-employees-outside-ctc-may-trigger-gst-liability/articleshow/57883279.cms). Now, I have the option of taking company car lease where the EMI will be taken from my allowance basket (which is part of my CTC). From what I understand, just like telephone reimbursements, once I start availing this facility, the EMI will be deducted from my pay and it will not appear in my payslip. I would like to know if such a facility also comes under the purview of taxing an employer and what is the expected rate of tax. I am worried if this is the case, the tax will be passed on to me and I will loose any tax benefit I gain in taking the car lease. Please clarify.
Replies (3)

If the money paid for the car is part of your salary, you are required to pay Income Tax on that salary part. If it is not part of your salary, company is required to pay GST on the transaction. Off course, whatever GST is paid by the company, the company gets input credit and hence the company must not pass on tax burden to you. If the company is buying the car, GST paid on the car is not available as input credit and certainly this burden shall be passed on you. 

That's fine but what are the rates for corporate leased vehicles

Dear Sir/Madam,

I am working in an accounts department of a manufacturing company. I have one query about vehicle leasing or rent.

Our company is renting car for directors and employees use from unregistered dealer. Fuel of car paid by our company. So can your clarify that how many GST will be charges on car rent under reverse mechanism and can avail ITC on the same.

 

Please reply


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