28 July 2010
Hello The company is paying petrol expense of its director. The car is owned by the director. He owns another car also which justifies that the car for which petrol exps are paid by the company is exclusively used for official purpose.
Is the petrol expense paid by the company taxable in the hands of Directors as salary?
28 July 2010
As long as it can be justified as the car is exclusively used for official purpose, these expenses will not to be added to the salary income of the director.
03 August 2010
In fact in the given circumstances, there is no perquisite / facility being providded to the director, so question of taxability in the salary income of director does not arise, as far as a car provision is concerned which is exclusively used for business by the director.
CAclubindia
