Wealth tax

Our company has given 8 cars to 8 sales executives.

Do we need to pay wealth tax on these cars? Can we say these cars have been using for commercial purpose?

 

Thanks in advance.

Replies (2)

As per section 2(ea) of the Wealth Tax Act,  motor car is considered asn an asset if it is not used for running them on hire.

In your case the cars are given to teh sales executives for carrying on their activities & not for the purpose of hire, hence they are chargeable to wealth tax.  the relevant extract of section 2(ea) is reproduced below:

 (ii)   motor cars (other than those used by the assessee in the business of running them on hire or as stock-in-trade) ;

Thanks for your reply...
What value do we need to consider to pay wealth Tax?

As per wealth tax, WDV value should be considered, but WDV as per companies act or as per income tax? Bcoz it says value of assets disclosed in balance sheet.

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