16 June 2016
Car purchased by a company on 31st Oct 2012 for the use of an employee fro office use. The car was bought back by the employee on 10th May 2014.
Perks @1800 was charged as perks till May 2014.
Now in the AY 2016-17 they are including the perks in the arrears and final settlement.
Parks is valued at the difference between the wdv as per IT Act and Companies Act on the date of buy back.
Cost of the car Rs 750000 buy back value Rs 515000.
What will be the perks and why this should be included in AY 2016-17 when the transaction was completed in 2014.
Even if the IRFS is followed this should have done in AY 2015-16 and the difference charged to books and not to an employee
CAclubindia
