A company has provided motor cars to its CMD, directors and employees. The fuel expenses and maintenance and running expenses are met by the employer. These cars are owned by the company.
Now the query is:
- How to ascertain that whether the cars are used for official purpose or fully personal purpose or parly for official and partly for personal purpose?
- Whether maintenance of log book is compulsory if the car is used for personal purposes only?
- whether th journey performed for residence to office and office to residence is treated as “for official purpose”
Please note that the employees are also receiving Conveyance allowance and claiming exemption of Rs 800 pm.
Regards
Sujit
CAclubindia
