Perquisites clarification

259 views 3 replies

Does the Driver allowance of INR 11,000 per month given to an employee in a non-metro city for both personal and official purposes to drive employee's own car, considered as perquisites?.

Note: The mainainace cost of employee's car is not born by the employer.

Replies (3)

Yes, it shall.

Specific provision is in respect of "running and maintenance charges".

The confusion I'm having is, the provision says maintenance with driver and maintenance without the driver. However, in our case employee only maintains his car but we will reimburse his driver's salary alone and we will not be having any other bills for the same. So still can we take this as a prerequisite?
 

Since the specific provision is in respect of "running and maintenance charges" which specifically includes the "chauffeur's remuneration",  the amount must be considered in the perqs. When the chauffeur's remuneration is included in the running and maintenance charges, it becomes a part of running and maintenance charges.

Further, the phrase used in the sub-rule is-

"Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above."

 

If the employer is paying the remuneration to the driver/chauffeur then this is definitely the expenditure incurred by the employer. The sub rule has not used any phrase other than the expenditure incurred by the employer. Nor did it made any distinction between running and maintenance charges or chauffeur remuneration. Since chauffeur remuneration is an expenditure incurred by the employer the same is to be considered for the purpose of the computation of the perquisite u/ Rule 3.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details