26 March 2008
CP , a Company plans to take on hire a car from an individual WI at 15K per month. CP allots the same to one of its Employee EE for his official use. Infact WI is wife of EE and owner of the car . The intention is to avoid higher incidence of tax in the hands of EE. Can any one express his opinion on the below.
1) Will there be TDS on hire paid to WI, if so what is the rate. 2) Will provision of car to EE considered as a perquisite in EE ‘s income 3) What is the effect of FBT on the transaction. 4) Is it mandatory to register the hire agreement to have validity before IT authorities.
CAclubindia
