Hi Shilps_mona,
There are two transactions..
First - Car is bought in the name of the employee's close person in whose name company provides the car lease rent..thereby maintaining the arm length's transaction..
Second..hire a profession agency like Orrus which provides the car to employees on the behalf of the company which has the option that after three years the car is sold to the employee at the written down value..
Regards,
Rajat
From India, Pune
101There are two transactions..
First - Car is bought in the name of the employee's close person in whose name company provides the car lease rent..thereby maintaining the arm length's transaction..
Second..hire a profession agency like Orrus which provides the car to employees on the behalf of the company which has the option that after three years the car is sold to the employee at the written down value..
Regards,
Rajat
From India, Pune
Hi Shilps_mona,
There are two transactions..
First - Car is bought in the name of the employee's close person in whose name company provides the car lease rent..thereby maintaining the arm length's transaction..
Second..hire a profession agency like Orrus which provides the car to employees on the behalf of the company which has the option that after three years the car is sold to the employee at the written down value..
Regards,
Rajat
From India, Pune
There are two transactions..
First - Car is bought in the name of the employee's close person in whose name company provides the car lease rent..thereby maintaining the arm length's transaction..
Second..hire a profession agency like Orrus which provides the car to employees on the behalf of the company which has the option that after three years the car is sold to the employee at the written down value..
Regards,
Rajat
From India, Pune
Hi Shilps_Mona,
Both are different schemes..
Usually they differ in the following ways..
First scheme - one get the benefit of the car n get paid indirectly which attracts TDS of 2.4 % on the bill.
Second scheme - is where company doesn't have the liability or doesn;t want to show such assets then this scheme is preffered and also as a retention strategy - he/she can buy the car at the WDV.
Regards,
Rajat
From India, Pune
Both are different schemes..
Usually they differ in the following ways..
First scheme - one get the benefit of the car n get paid indirectly which attracts TDS of 2.4 % on the bill.
Second scheme - is where company doesn't have the liability or doesn;t want to show such assets then this scheme is preffered and also as a retention strategy - he/she can buy the car at the WDV.
Regards,
Rajat
From India, Pune
Following policies applied if the applicant is applying for a leasing
vehicle.
a) Policy applicable to those staff those completed
two years.
b) The Leasing is for MAX. 3 years
c) Company deal a contract with leasing company / bank to provide vehciles to their staff. Company only provides the gurantee while intrest and actual amount MUST be paid by the appliant.
d) on termination / resignation of services the company is resonsible to update the leasing company /bank about the employee status. Then it will be on bank / leasing company either demand the remaining amount from the employee or continue the leasing service or ask for any other gurantee.
e) Company will not release the employee end of service benefits until the employee brings the clearance from the leasing company (as company has provided the gurantee).
f) The monthly leasing amount MUST not exceed 25% of employee salary.
From India, Pune
vehicle.
a) Policy applicable to those staff those completed
two years.
b) The Leasing is for MAX. 3 years
c) Company deal a contract with leasing company / bank to provide vehciles to their staff. Company only provides the gurantee while intrest and actual amount MUST be paid by the appliant.
d) on termination / resignation of services the company is resonsible to update the leasing company /bank about the employee status. Then it will be on bank / leasing company either demand the remaining amount from the employee or continue the leasing service or ask for any other gurantee.
e) Company will not release the employee end of service benefits until the employee brings the clearance from the leasing company (as company has provided the gurantee).
f) The monthly leasing amount MUST not exceed 25% of employee salary.
From India, Pune
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CAR LEASE POLICY.pdf
HR Policy Manual FINAL except Car Policy (3).doc