Case 1:
The company has taken car on lease and the same is provided to the employee. Repairs and maintenance borne by the leasing company. The company also reimburses the driver's salary (Rs. 4000 p.m).
Case 2:
The car is owned by the employee. Repairs and Maintenance is borne by the company and also driver's salary is reimbursed (Rs.4,000 p.m.)
Cubic Capacity of the car < 1.6 liters
Please clarify the value of perquisite.
Dear Vinod,
Value of perks depends upon the usage of Car,
plz clarify whether the car is used
1) exclusively for personal use
2) exclusively for official use
3) for both official & personal use
CASE1:
If it is wholly for official use then value of perquisite is NIL.
If wholly for private use then the value of perquisite will actual expenditure incurred for maintenance or running of car,remuneration of driver and hire charges.
If it is Partly for official use and partly for private use then,
Engine capacity : upto 1.6 litre - Rs.2,700 per month
Engine capacity : exceeds 1.6 lite - Rs.3,300 per month
CASE 2.
If wholly for official use then value of perquisite is nil
If wholly for private use then value of perquisite is actual expenditure incurred by employer
If partly for official use and partly for private use then value of perrquisite is a sum actually spent as reduced by an amount Rs.1800 (without driver) or Rs.2700 (with driver)
Regards,
Fatema
Dear Amir,
The vehicle is used partly for official and partly for personal use
Dear Vinod,
Fatema is rite...
Case 1
If Co.(i"employer) is paying only Rs. 4,000/- then
Engine capacity : upto 1.6 litre - Rs.2,700 per month
Engine capacity : exceeds 1.6 lite - Rs.3,300 per month
Case 2
Actual Expenses less Rs. 3,300 per month (or Rs. 2,700/month in case of engine capacity is upto 1.6 Litres)
Here the driver's salary is reimbursed to the employee, the company does not pay directly to the driver.
Even then if the computation is same mentioned, then the employee owning the car will be taxed more i.e., Rs.3,100 p.m. (Rs.4,000- 900 in this case) where as in the first case, the employee will be taxed only on Rs. 900 pm. even though he is reimbursed the same Rs.4,000 p.m.
Please clarify
Dear Vinod,
It doesnot make any difference who is directly paying to the driver, in nutshell co. is bearing the driver;s cost...
And what u have written after that I didn't get anything...From where u have come to 3,100 or 900
Let me make it clear,
Case 1:
The company provides the car to the employee, also reimburses Rs.4,000 p.m towards driver's salary.
Case 2:
The car is owned by the employee. Repairs and Maintenance of Rs. 2,000 p.m and driver's salary of Rs.4,000 p.m. reimbursed to the employee
The car is used both for official and personal use.
What would be the perquisite?
| Originally posted by : Amir | ||
 |
Dear Vinod, Fatema is rite... Case 1 If Co.(i"employer) is paying only Rs. 4,000/- then Engine capacity : upto 1.6 litre - Rs.2,700 per month Engine capacity : exceeds 1.6 lite - Rs.3,300 per month Case 2 Actual Expenses less Rs. 3,300 per month (or Rs. 2,700/month in case of engine capacity is upto 1.6 Litres) |
 |
AMIR IS CORRECT......
If company does not provide driver's salary to employees and employees is giving driver salary to driver then employees can claim driver salary from taxable perquisits??
if the employer doesnt pay driver salary, take that rs.900 out of the picture..
what are the expenses and salaries in motar car perquisite according to A .Y. 2010-2011
CAclubindia
