26 August 2010
Please help me to provide a note on valuation of perquisite in respect of Motor cars - reimbursement of Petrol and Driver salary. Also I would like to know other non taxable reimbursement head of expenses
I. If Motor Car is Owned by employer & running and maintenance expenses are incurred or reimbursed by Employer
Official purposes only No perquisite, if specified conditions satisfied.
Private purposes only Actual expense incurred by employer Add: 10% p.a of Actual Cost of Car or Hire charges of Car Add: Salary to Driver Less: amount recovered from employee
Partly Official & partly Private purposes. Upto 1600CC : Rs 1,800 p.m Above 1600CC : Rs. 2,400 p.m Add: If driver provided : Rs.900 p.m Less: amount recovered from employee
II. If Motor Car is Owned by employee & running and maintenance expenses are incurred or reimbursed by Employer
Official purposes only No perquisite, if specified conditions satisfied.
Private purposes only Actual expense incurred by employer as Less : Amount recovered from employee.
Partly Official & partly Private purposes Actual expense incurred by employer Less: amount recovered from employee Less: Upto 1600CC : Rs. 1,800 p.m Above 1600CC : Rs. 2,400 p.m Less: If driver provided : Rs.900 p.m
III. If Motor Car is Owned by employer & running and maintenance expenses are incurred by Employee
Official purposes only No perquisite, if specified conditions satisfied.
Private purposes only 10% p.a of Actual Cost of Car or Hire charges of Car Add: Salary to Driver (if paid by employer) Less: amount recovered from employee
Partly Official & partly Private purposes. Upto 1600CC : Rs 600 p.m Above 1600CC : Rs 900 p.m Add: If driver provided : Rs.900 p.m Less: amount recovered from employee
IV. If Any other Automotive Conveyance is Owned by employee & running and maintenance expenses are incurred or reimbursed by Employer
Official purposes only No perquisite, if specified conditions satisfied.
Partly Official & partly Private purposes. Actual expenditure incurred by employer Less: amount recovered from employee Less: Amount for Official use Rs.900 p.m
CAclubindia
