Perquisite on company owned car
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 March 2016
Hi
We have a car scheme for our senior employees. Under that scheme, the employee is paying 1.5 % of car value every month and we are deducting the same from special allowance to give tax benefit. We are also reimbursing the fuel bills and driver salary to those employees. The car are owned by the Company and are treated as purchased in the name of the Company, At the end of four years , the employee has an option of purchasing it or replacing it with new car.
Should perquisite applied on car or driver salary when the Car is purchased in the name of the Company ?
We have a car scheme for our senior employees. Under that scheme, the employee is paying 1.5 % of car value every month and we are deducting the same from special allowance to give tax benefit. We are also reimbursing the fuel bills and driver salary to those employees. The car are owned by the Company and are treated as purchased in the name of the Company, At the end of four years , the employee has an option of purchasing it or replacing it with new car.
Should perquisite applied on car or driver salary when the Car is purchased in the name of the Company ?
Arun Biyani
(Expert)
23 March 2016
Yes.. 1800 p.m. (assuming 1600 CC engine or more) for fuel and maintenance and 900p.m. for driver salary.
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