when the Co. is paying to the Empee the motor car reimbursement expense then what is the tax liability for the Employee & employer??? And whether motor expense will be regarded has perquites in the employee hand & he can claim exemption till Rs.1600pm.
kindly reply (renu.kadge @ gmail.com)
Thks
Dear Ms. Renu,
If employer being person other than individual(prop) has provided with moter car and re-imbersing the moter car expenses then employer is liable to pay FBT. No tax on employee.
If fixed motor car allowances are paid on monthly basis or otherwise then it will be taxed in the hands of employees and no FBT is require to pay on such expenses as per Section 115WB(2).
CAclubindia
