Tds on salaries

TDS 772 views 6 replies

aishwarya s raghavan

student

224 Points Joined October 2011

Dear All!

Please tell me whether in the instant case the value will be called as a perqusite.

The company has taken a car on hire and provided the same to the employee. The company monthly pays car hiring charges amounting to RS.12,500/-. Also, the company reimburses the employee for the drivers salary paid. (say Rs.5,000/- every month)

Will this transaction be called as perquisite? If yes, will the answer differ if the car is used for both official and personal purpose.

If it is a perquisite, what will be the value of the perquisite.

Replies (6)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

perquisite value will be nil if car wholly and exclusively used for official purpose.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

in second case value of perquisite will be 1200p.m. for running exp. and 600p.m. for driver salary, if such exp. has been reimbursed by employer.

Peter Sequeira

81 Points Joined June 2010

In the first case, perquisite value will be NIL.

In the secound case, Perquisite value will be Rs. 1800 p.m. for maintenance and Rs. 900 p.m. for driver's salary for vehicle. This is for a vehicle with cubic capacity upto 1.6 litres.

For vehicle with cubic capacity in excess of 1.6 litres, perquisite value will be Rs. 2400 p.m. for maintenance and Rs. 900 p.m. for driver's salary.