05 August 2010
If the assets are purchased in the name of the employee & Co. bears the expense: a) The Co. can charge it off as expense in its books. b) The entire value of such assets will be added to the income of the employee & taxed as perquisites.
If the assets are purchased in the name of the co. & given to employee for personal use: a) The assets will be capitalised in the books of the Co. on which it will be entitled to claim depreciation. b) Based on the nature of the asset, a fixed percentage of the value of asset will be added to the income of the employee every year & taxed as perquisite.
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