18 May 2020
Yes, it can be transferred. If transferred at free of cost income tax applicable on book value of car considering it as part of remuneration paid to Director.
18 May 2020
Thanks Sir it means a company can transfer its used car to the director at free of cost. Sir one more question suppose the WDV of car is Rs. 6 Lakh so now what will be the tax liability for both in the hands of company and director.
19 May 2020
if the director is managing director or whole time director and there is an express agreement of employment between the company and the director then it is taxable perq otherwise the profit on the transfer of car will be treated as short term capital gain. no liability is in the hand of director
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