02 April 2009
Hello Sir/Madam So many time we all see that company pay/reimburse a driver salary of upper level empoyee who came to company by vehicle.so therefore guide me the appropriate head.whether that driver come under payroll of company and PF,ESI liability also has to be incurred or we booked under any other head. But the driver payment liablity is on employee not on company.
02 April 2009
If the driver payment is not on the company and it is paid on behalf of employee then treat it as part of salary and should be taxed accordingly.
If the company takes the driver into their rolls and exclusively uses for only that employee then it becomes perquisite.
If you say driver is on the rolls of the company or if you debit to vehicle maintenance then pf esi liability will arise.
If you debit to salary of that employee then pf esi will not arise.