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Perquisites- Motor car 1600cc

26 August 2020

If car of 1600cc, which is also used for personal purposes and driver is provided by company, what will be value of perquisite???

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4 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 26 August 2020

Owner

R&M by

Use

Engine CC ≤ 1.6 ltr.

Employer

Only Personal^{^}

^Employee/Household Mem.

Actual expenditure incurred by employer for running and maintenance
(+) chauffeur remuneration by employer
(+) amount of normal wear and tear
(10% p.a. of actual cost of MC)
(-) amount charged from employee for use

Employee

Employer

Only Personal^{^}

^Employee/Household Mem.

Actual expenditure incurred by employer for running and maintenance
(+) chauffeur remuneration by employer
(-) amount charged from employee for use

Note: Only wear and tear not included like when MC owned by employer, rest same

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Surendra Kumar (31 Points)
Replied 26 August 2020

I was solving a question where no amount was given. But in solution, 1800 per month for car and 900 per month for driver was treated as perquisite. How come? is there some specification regarding amount to be charged as per cc of car ??

Deepak Gupta (CA Student) (15922 Points)
Replied 26 August 2020

Originally posted by : Surendra Kumar
	I was solving a question where no amount was given. But in solution, 1800 per month for car and 900 per month for driver was treated as perquisite. How come? is there some specification regarding amount to be charged as per cc of car ??