Tds on petrol & driver salary reimbursement
This query is : Resolved
04 March 2013
Dear All,
Want to know about if we as company are giving petrol reimbursement to our employees and driver salary for their car, it will attract any TDS under perquisite or not. Car is owned by employees and he is claiming as expenses
Regards
Deepak
Want to know about if we as company are giving petrol reimbursement to our employees and driver salary for their car, it will attract any TDS under perquisite or not. Car is owned by employees and he is claiming as expenses
Regards
Deepak
04 March 2013
yes will be considered as perquisite if car is used for personal use only..
04 March 2013
Car is using for office use only then pls advice.
04 March 2013
then no tax is leviable and company can claim expenditure in its books of accounts...
04 March 2013
but company need to maintain log book to show for which purpose car was used
04 March 2013
we want to use this component in salary structure to save tax on employees hand, so please guide me if we goes to show it as reimbursement and collect bills and voucher from employees every month then what will be treatment for the same
04 March 2013
you can give them reimbursment, take bill as they have incurred exp on company work then no taxability
04 March 2013
Thanks Sir
04 March 2013
This is not to debate just sharing.
Your intention to use this component in salary structure to save tax in employee’s hand, on other hand you are saying that reimbursement is only for official job.
How can you include this in salary structure and have employees accepted this scheme, they are not deriving any benefit and just getting reimbursement of official expenses incurred.
Please note tax treatment is different if car is used for Both official and private purpose
Your intention to use this component in salary structure to save tax in employee’s hand, on other hand you are saying that reimbursement is only for official job.
How can you include this in salary structure and have employees accepted this scheme, they are not deriving any benefit and just getting reimbursement of official expenses incurred.
Please note tax treatment is different if car is used for Both official and private purpose
05 March 2013
Thanks Sir, my actual plan is to covered it under CTC as reimbursement to higher slab employees.
If they produce bills every month for Petrol and voucher for payment of driver salary and we make payment against these bills/voucher.
then it will be covered under perquisite or not
If they produce bills every month for Petrol and voucher for payment of driver salary and we make payment against these bills/voucher.
then it will be covered under perquisite or not
05 March 2013
In your case Car is owned by employees and is used both for official and private purpose.
Yes it is taxable as perquisites and the perquisite value would be as under
1)If employee has small car: Amount reimbursed minus Rs.1800 per month minus Rs. 900 for Driver. Suppose employee has been reimbursed 5000 per month including driver salary, taxable value would be 5000-1800-900=2300 per month.
2)If employee owns big Car (cubic capacity >1600cc): Amount reimbursed minus Rs.2400 minus 900 for driver. i.e. 5000-2400-900=1700. Per month.
Tax treatment is different and more beneficial for employee if car is owned by the Employer.
Yes it is taxable as perquisites and the perquisite value would be as under
1)If employee has small car: Amount reimbursed minus Rs.1800 per month minus Rs. 900 for Driver. Suppose employee has been reimbursed 5000 per month including driver salary, taxable value would be 5000-1800-900=2300 per month.
2)If employee owns big Car (cubic capacity >1600cc): Amount reimbursed minus Rs.2400 minus 900 for driver. i.e. 5000-2400-900=1700. Per month.
Tax treatment is different and more beneficial for employee if car is owned by the Employer.
Message likes :
1 times
05 March 2013
Thanks Sir, clear
Message likes :
1 times
05 March 2013
one more question please if we shows car taken on hire with driver and petrol for employees for office use and company paid directly to other person then it will be covered under perquisite or not
Car Hire Charges - 25000/- with Driver & Petrol
TDS Contractor - 2% on vendor
Then Pls advice it would be taxable in employees hand or not
Car Hire Charges - 25000/- with Driver & Petrol
TDS Contractor - 2% on vendor
Then Pls advice it would be taxable in employees hand or not
05 March 2013
No question of taxability in employee’s hand at all, as the car is used exclusively for Office work.
Please note car should be used only for official work and not for private purpose of employees otherwise taxability would arise.
Please note car should be used only for official work and not for private purpose of employees otherwise taxability would arise.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
