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PCC MAY 2010 - Valuation of Car Perk

Pranav Gupta (Trainee) (30 Points)

18 April 2010

Are the new rules for valution of car perquistes applicable for PCC May 2010 exams..????

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17 Replies

Girish Mathuria (STUDENt) (138 Points)
Replied 18 April 2010

yaaaaaa.. in CAr perk the exemption amount is increased.......

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Raj Saxena (1412th Tiger) (Struggling Student) (272 Points)
Replied 18 April 2010

In my thot YES

Mayank kharbanda (Risk Advisory Services) (409 Points)
Replied 18 April 2010

NO, NOT APPLICABLE FOR MAY 2010....

ICAI HAS MENTIONED IT IN THE STUDY PAPER...

IT WILL BE APPLICABLE FOR NOV 10

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Mohd Javed Khan (CA FINAL) (622 Points)
Replied 18 April 2010

yes ji aplicable hai yaar..............

kaun kah raha hai ki nae hai bro .........

plzz check it ok ............

CA. Praveen (Chartered Accountant) (119 Points)
Replied 18 April 2010

I agree with mayank. I have the copy of the same which i got in caclub only. Car perks are applicable to Nov - 10 exams.

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Girish Mathuria (STUDENt) (138 Points)
Replied 18 April 2010

noo way. This ammended applicable from may-10 pcc exam.

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27191 Points)
Replied 18 April 2010

Its Applicable from May 2010 Itself

* Krishna * (CA Student) (6149 Points)
Replied 18 April 2010

Its applicable from Nov10 exams only.. Refer ICAI website for further details or student newsletter of April.

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@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 18 April 2010

no in car perk amount is not increased. it is applcable for nov 10 students.

for may 10 students car perk is at old rate....just check ICAI site

Mayank kharbanda (Risk Advisory Services) (409 Points)
Replied 19 April 2010

Originally posted by : mohdjaved
	yes ji aplicable hai yaar.............. kaun kah raha hai ki nae hai bro ......... plzz check it ok ............

SORRY TO SAY SIR BUT I HAVE ALREADY CHECKED IT.....

U PLEASE CHECK IT....

ND HERE'S DA LINK FOR UR REFERENCE....

https://www.icai.org/post.html?post_id=5488&c_id=219

Attached File : 45 supplemenatry study paper.pdf downloaded: 248 times

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CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 19 April 2010

New perquisites valuation rules for Assessment Year 2010-11 are replica of old rules

One of the key amendments has been in the taxability of car and driver facility provided by the employer. Motor car used for official purpose continues to be tax-free. Similarly, there is no change invaluation norms for motor car owned by the employer and provided to the employee exclusively for personal purposes.

The change in valuation norm has been made for cases where motor car and driver are provided by an employer for official and personal purposes, which has essentially increased by 50%; however, the taxability in such cases, considering the expenditure that may be incurred towards this facility, still remains nominal.

Similarly, the relief for use of employee-owned cars for official and personal purposes has been increased by 50%, resulting only in a marginal relief to the employees.

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CourseCart.in (Mentor at SHAYVIDZ Academy) (3756 Points)
Replied 19 April 2010

For May2010 attempt, 1200, 1600, 400, 600 plus 600 p.m. for chauffeur

From Nov2010 attempt, 1800, 2400, 600, 900 plus 900 p.m. for chauffeur

ACMA Ayan Paul (Analyst-Corporate Rating at CARE Ratings) (284 Points)
Replied 19 April 2010

https://www.icai.org/post.html?post_id=5488&c_id=219

CA Ghanshyam Joshi (CA, Dip IFR (ACCA UK)) (3229 Points)
Replied 19 April 2010

This is the notification issued by ICAI -

Announcement relating to taxation papers for students appearing in May 2010 examination PE-II [Income-tax and Central Sales Tax], PCC/IPCC [Taxation], Final (Old) Course [Direct Taxes] and Final (New) Course [Direct Tax Laws] - (22-02-2010)

(1) Fringe Benefit Tax is not applicable from A.Y.2010-11 and hence, is not relevant for May 2010 examination.

(2) Consequential Notification of new perquisite rules on 18.12.2009 not to apply for May 2010 examination

Consequent to abolition of fringe benefit tax, certain benefits taxed earlier as fringe benefits in the hands of the employer would now be taxable as perquisites in the hands of the employees. For this purpose, new perquisite valuation rules have been notified vide Notification No.94/2009/ F.No.142/25/2009-S.O.(TPL), dated 18.12.2009 with retrospective effect from 1.4.2009. However, the new perquisite valuation rules would be applicable only for November 2010 examination. They would not be applicable for May 2010 examination, since only notifications/circulars issued up to 31st October, 2009 are relevant for May 2010 examination.

(3) Applicability of erstwhile Rule 3 for May 2010 examination

Therefore, the erstwhile Rule 3 would be applicable for May 2010 examination. All the perquisites which were earlier taxable in the hands of the employee, only if the employer was not liable to pay fringe benefit tax, would now be taxable in the hands of the employee in all cases, since no employer is liable to pay fringe benefit tax for A.Y.2010-11.
Rule 3(7), providing for valuation of “other fringe benefits and amenities”, is based on the terms of the provisions contained in the erstwhile clause (vi) of section 17(2). The Finance (No.2) Act, 2009 has amended section 17(2) by including certain other perquisites under clauses (vi) and (vii) of section 17(2). Consequently, the residual clause, namely, clause (viii) of section 17(2), now provides for taxing the value of any other fringe benefit or amenity as may be prescribed. Therefore, the Rule 3(7), prescribing the fringe benefits or amenities in terms of the erstwhile clause (vi) [now clause (viii)] of section 17(2)] have been given in the latest study material relevant for May 2010 examination.