motor car valuation

This query is : Resolved

p.e.rao

p.e.rao (Querist)
Follow

16 January 2010 Sir, the notification no. 94/2009 dated 18.12.2009, 2(ii), motor car owned by the employee used partly for official purposes and partly for personal uses. The wording given in the clause says " the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer ".
My query is :-
If the employer pays a certain percentage of basic pay every month" is the employee eligible to claim deduction of Rs 1800/= + Rs 900 for chauffeur . Can the employer interpret this is an allowance and not reimbursement and running & maintenance expenses charges met by him?.
please comment. Thanks

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
Follow

18 January 2010 You cannot enjoy exemption of any allowance untill not given with the name of "Allowance".

Here, you are getting fix % of salary for your car. I think owned by you, therefore according to rule if Car used partly for Personal & partly for Official purpose then exemption is available Rs. 1800pm + Rs. 900 pm(if chauffer available).

However, if you want take exemption for whole amount then you have to produce LOG BOOK & CERTIFICATE by employer, which will mention that whole amount used for official purpose.

Regards!!!

p.e.rao

p.e.rao (Querist)
Follow

18 January 2010 Thanks!!!

Upgrade to CAclubindia Pro. Subscribe Now!