07-03-2010, 04:02 PM
Mr. Employee (an individual) appointed as sales manager in ABC Company. The company acquired a car on lease from Mr. Lessor on following terms on 01 June 2006 and provided to Mr. Employee. The fair value of car on the commencement of lease Rs. 1,000,000
⢠Initial deposit 10% Rs. 100,000
⢠Lease rental Rs. 30,000 per month in arrears
⢠Lease term of three years was ended on 31 May 2009.
⢠At the end of lease, Lessee had following options;
o To retain the car against security deposit initially deposited, or
o To get back its initial deposit and in this case lessee was required to return the car to lessor.
ABC Company decided to retain the car against the amount of security deposit.
Mr. Employee is required to file its income tax return for the tax year ended 30 June 2010. What would be the fair value of car for the purpose of income tax?
Regards,
*
⢠Initial deposit 10% Rs. 100,000
⢠Lease rental Rs. 30,000 per month in arrears
⢠Lease term of three years was ended on 31 May 2009.
⢠At the end of lease, Lessee had following options;
o To retain the car against security deposit initially deposited, or
o To get back its initial deposit and in this case lessee was required to return the car to lessor.
ABC Company decided to retain the car against the amount of security deposit.
Mr. Employee is required to file its income tax return for the tax year ended 30 June 2010. What would be the fair value of car for the purpose of income tax?
Regards,
*
