Dear All,
Does anyone have a car scheme for employees with the rules of GST in detail?
We have an agreement for a car scheme, but as per GST, we should apply GST every month for employees who are buying a car from the company. However, as per HR and the organization, we feel it's not an employee-friendly scheme because if every month the employee has to pay GST on the car, what is the benefit for employees to buy a car from the company?
If anyone can help me with an employee-friendly car scheme, it would be great.
From India, Nagpur
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Does anyone have a car scheme for employees with the rules of GST in detail?
We have an agreement for a car scheme, but as per GST, we should apply GST every month for employees who are buying a car from the company. However, as per HR and the organization, we feel it's not an employee-friendly scheme because if every month the employee has to pay GST on the car, what is the benefit for employees to buy a car from the company?
If anyone can help me with an employee-friendly car scheme, it would be great.
From India, Nagpur
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Your question is not clear. GST is a complex law, especially with reference to motor vehicles. Giving just a small cryptic query will not give you the right answer.
You need to talk to a GST expert and provide them with full details if you want to be safe and proper. If you wish, you may get in touch with my office for the same (paid assignment).
From India, Mumbai
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2500You need to talk to a GST expert and provide them with full details if you want to be safe and proper. If you wish, you may get in touch with my office for the same (paid assignment).
From India, Mumbai
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It is not clear from the original post what the car scheme is. Is the organization a car manufacturing company? Is it selling old company cars to the employees?
Now, let us consider GST. If the organization is covered under GST and has raised any invoice to sell the car, then GST will automatically apply.
Many organizations provide car facilities to higher-level employees. These employees are asked to purchase their own cars, and the organization offers car loans at zero interest or a subsidized interest rate. The organization also provides fuel reimbursement, driver's salary, etc. The income tax (ITAX) in the hands of the employees is determined as per the ITAX act and rules.
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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Now, let us consider GST. If the organization is covered under GST and has raised any invoice to sell the car, then GST will automatically apply.
Many organizations provide car facilities to higher-level employees. These employees are asked to purchase their own cars, and the organization offers car loans at zero interest or a subsidized interest rate. The organization also provides fuel reimbursement, driver's salary, etc. The income tax (ITAX) in the hands of the employees is determined as per the ITAX act and rules.
S K Bandyopadhyay (WB, Howrah)
From India, New Delhi
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