Tax implication on car usage

SP2010 (Manager) (58 Points)

22 September 2010  

Hello All,

One of our Director's has a car gifted to him by his father. The car is registered in his father's business name in a different state (Tamil Nadu). The Director uses the car for both business and personal use. During business trips he pays for fuel and toll. Can he now claim the fuel expense and toll fees back from the company through an expense claim along with fuel and toll receipts? Will the expense payments to the employee be subject to any fringe benefits or other income tax? Ours is a private limited company based in Karnataka.

Thanks for your help