07-15-2010, 05:30 PM
Dear,
The said transaction has two fold effect, company has to account for the same transaction in different way and employee will have different effect, and these may not be complected with each other.
Since, you are seemed to be concerned with employee; notwithstanding any other section with regard to the said transaction in the ordinance, this will be treated as a perquisite to the employee and 10% or 5% , based on the condition, of the fair market value at the commencement of lease will be considered for the purpose of ascertaining the annual worth of the perquisite, and this will be regardless of what has been(will be) the cost to the employer.
Furthermore, if the employee has some annual contribution toward the realization/compensation of the said vehicle, then the same will be deducted from the annual value of perquisite to arrive at the taxable worth of perquisite of the employee.
Should you have any query, in this regard, let me know through email.
Best Regards,
Faisal.
