Can you help me with following questions:
1. Can we (Company) hire cars from various individuals and give it to our employees of certain grades? In other words, cars must be hired from a leasing company only?
2. Is it mandatory to have car leased for new car only? We want to hire second hand cars.
3. Whether renting car from individual to a company to be used by certain employee of that company, amounts to commercial use or personal use of third person? It is to be noted that car will not be used for transporting employees or goods of the company.
Thanks in Advance.
From India, New Delhi
1. Can we (Company) hire cars from various individuals and give it to our employees of certain grades? In other words, cars must be hired from a leasing company only?
2. Is it mandatory to have car leased for new car only? We want to hire second hand cars.
3. Whether renting car from individual to a company to be used by certain employee of that company, amounts to commercial use or personal use of third person? It is to be noted that car will not be used for transporting employees or goods of the company.
Thanks in Advance.
From India, New Delhi
Hi Vikas,
The comments to your queries are as follows:
1. Can we(Company) hire cars from various individuals and give it to our employees of certain grades? In other words, cars must be hired from a leasing company only?
= It's nothing unique peculiar for your co.alone. Quite common as so many cos uses such arrangements, especially IT & ITES units. There are lots of tours & travels operators who would lease/rent vehicles of your choice at diff.rates.
2. Is it mandatory to have car leased for new car only? We want to hire second hand cars.
= It's about your choice, you are free to hire either new or used (second hand) cars.
3. Whether renting car from individual to a company to be used by certain employee of that company, amounts to commercial use or personal use of third person? It is to be noted that car will not be used for transporting employees or goods of the company.
= If the cars are arranged for a pool of people like pick-up & drop of employees for transporting employees from their homes and drop them from office after close of office. In this it's not a commercial use for individuals. Cos can book the cost as business expenses. However, when a hired car is allotted for exclusive use of an employee, beyond the limit is to be reckoned as 'perks' which is subject to IT.
?? It is to be noted that car will not be used for transporting employees or goods of the company.
What you mean by this ??
From India, Bangalore
1073The comments to your queries are as follows:
1. Can we(Company) hire cars from various individuals and give it to our employees of certain grades? In other words, cars must be hired from a leasing company only?
= It's nothing unique peculiar for your co.alone. Quite common as so many cos uses such arrangements, especially IT & ITES units. There are lots of tours & travels operators who would lease/rent vehicles of your choice at diff.rates.
2. Is it mandatory to have car leased for new car only? We want to hire second hand cars.
= It's about your choice, you are free to hire either new or used (second hand) cars.
3. Whether renting car from individual to a company to be used by certain employee of that company, amounts to commercial use or personal use of third person? It is to be noted that car will not be used for transporting employees or goods of the company.
= If the cars are arranged for a pool of people like pick-up & drop of employees for transporting employees from their homes and drop them from office after close of office. In this it's not a commercial use for individuals. Cos can book the cost as business expenses. However, when a hired car is allotted for exclusive use of an employee, beyond the limit is to be reckoned as 'perks' which is subject to IT.
?? It is to be noted that car will not be used for transporting employees or goods of the company.
What you mean by this ??
From India, Bangalore
Thank you sir for your valuable time.
can you solve one of my query regarding the subject, suppose if company does not want to buy car itself and will be to ask employees family member to buy it and then lease it to the company . company then can allot it back to the employees for official work?
if it can be possible then what is the impact?
From India, New Delhi
can you solve one of my query regarding the subject, suppose if company does not want to buy car itself and will be to ask employees family member to buy it and then lease it to the company . company then can allot it back to the employees for official work?
if it can be possible then what is the impact?
From India, New Delhi
Hi Vikas,
I don't know whether you came across such instances being followed elsewhere or real doubt arose. This what exactly happening in many estts., including banks. I know in some IT units, the co. grant loans to some of their employees to buy cars, register in their names, of course with hypothecation duly endorsed, allot the very same cars to them itself and pay either allow. or lease rent. So many your doubt is nothing new. It's well and good if the cars are not in the names of employees. Whether for official work or side by side use them for personal who can strictly track those instances. Once car usage allowances is paid there ends the matter. Paying rent would involve some paper work.
From India, Bangalore
I don't know whether you came across such instances being followed elsewhere or real doubt arose. This what exactly happening in many estts., including banks. I know in some IT units, the co. grant loans to some of their employees to buy cars, register in their names, of course with hypothecation duly endorsed, allot the very same cars to them itself and pay either allow. or lease rent. So many your doubt is nothing new. It's well and good if the cars are not in the names of employees. Whether for official work or side by side use them for personal who can strictly track those instances. Once car usage allowances is paid there ends the matter. Paying rent would involve some paper work.
From India, Bangalore
Dear Vikas,
The comments to your queries are as follows:
1. There is nothing wrong in hiring vehicles from others for the company’s usage. Now it is a common practice to remain unbothered, if a car hires from an agency. The cars take on hire for certain hour of usage or for 24 hours use as you need. That you may allot to any of your staffs.
2. While one is hiring and paying cost generally opts for new cars but if you cut down the cost of hiring then one can go for second-hand cars, as the case may be.
3. This is a policy matter of your management to take the hiring from an individual or from any travel agency.
4. Your company management has bring down a policy for the use of cars (KM running, personal+ family+ limit of area(home to office or home to office and to other places). By doing this you can control usages and cost.
From India, Mumbai
The comments to your queries are as follows:
1. There is nothing wrong in hiring vehicles from others for the company’s usage. Now it is a common practice to remain unbothered, if a car hires from an agency. The cars take on hire for certain hour of usage or for 24 hours use as you need. That you may allot to any of your staffs.
2. While one is hiring and paying cost generally opts for new cars but if you cut down the cost of hiring then one can go for second-hand cars, as the case may be.
3. This is a policy matter of your management to take the hiring from an individual or from any travel agency.
4. Your company management has bring down a policy for the use of cars (KM running, personal+ family+ limit of area(home to office or home to office and to other places). By doing this you can control usages and cost.
From India, Mumbai
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