03 September 2007
Employer's expenses: Rs 1,200 per month if the rating of the car is up to 16 hp or the cubic capacity of the engine is up to 1.88 litres;
otherwise, Rs 1,600 per month is taken as the value of the perquisite. If the employer also provides a chauffeur, an additional amount of Rs 600 is added to the value of the perk.
Employee's expenses: Rs 400 per month if the rating of the car is up to 16 hp or the cubic capacity of the engine is upto 1.88 litres; otherwise Rs 600 per month will be the value of the perquisite. If the employer also provides a chauffeur, an additional amount of Rs 600 is added to the value of the perk.
Official use only: Not a perquisite Private use only: Actual expenses incurred by the employer For official and private use: Actual expense incurred by the employer less Rs 600. However, if the employer/employee claims that the amount to be included as perquisite is less than the amount so determined, then proper documentation has to be maintained.
CAclubindia
