Perquisites

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2011 Dear All,

one of client company director wants to buy a car in the name of the company. but while leaving the company he wants to get the car in his name at free of cost.for that purpose he can can forgo some of his salary. eg as of now his CTC 30 lakh P.A but he can reduce his CTC to 27 lakh if he gets the car at free of cost while leaving the company ( cost of car Rs.10 lakh). the idea behind is to save the tax on salary income and to reduce Tax liability of company .
Please let me know any such possibility

Thanks in advance

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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26 January 2011 IF he is using the car for personnel purpose, It will be covered under perquisite.

At the time of retirement, As per book value of car, it will be treated as gift, if given free of cost.

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Dear Shailesh

Thanks for the reply..

I Think if car is given as gift ( free of cost) , the Book value will be considered as perquisites in the hands of Employee

Pls Confirm

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