Vey Urgent : Treatment of Driver salary & Fuel charges ?

This query is : Resolved

CMA. Subhash Kumar Jha (Querist)
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11 December 2008 Sir,

We are a software company & enjoying FBT @ 5 % on Domestic travels. I have 3 questions :

1. Whether driver's salary for company car (used by directors for official purpose) is local conveyance or vehicle running maintenance ?? (# Driver is personal driver of directors & directors are claiming reimbursement for the payment of his salary.)

2.Whether fuel charges for company car is local conveyance or vehicle running maintenance ??

3. Depreciation on car is calculated in March so whether it should be taken into account while calculating FBT on 1/2/3 instalment ??

Please reply urgently.

Thanks & Regards,

Subhash

Ravikumar.G

Ravikumar.G (Expert)
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11 December 2008 1. Salary paid to a driver of a motor car is liable for FBT

Ravikumar.G

Ravikumar.G (Expert)
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11 December 2008 2. Running and maintenance of vehicle : Running expenses including Fuel, Tyre, Insurance and Road Tax.

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Ravikumar.G

Ravikumar.G (Expert)
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11 December 2008 3. Depreciation as per the Income Tax act.Proportionately it can be taken.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Querist)
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11 December 2008 Sir,

My 1st question is still unanswered.

Under the circumstances, i mentioned in my original query, driver's salary is to be charged under CONVEYANCE or Vehicle Running Exp ?

Subhash

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Ravikumar.G

Ravikumar.G (Expert)
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11 December 2008 Sec 115WB(2)(H) clearly says expenses relating to repair, running and maintenance of motor cars includes salary paid to a driver of a motor car.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Querist)
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11 December 2008 Thank U very much Sir,

Subhash