BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

HUMAN RESOURCES MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is NOT considered compensation?
A
Salary
B
Company car
C
Wage
D
Benefits
Explanation: 

Detailed explanation-1: -If the car provided by the employer is solely used for personal reasons and if the expenditure is borne by the employer completely, the entire amount will be taxable. No benefit can be availed by the employee in this regard.

Detailed explanation-2: -The company car policy defines the guidelines for eligibility on company-owned vehicles and also enables eligible employees to opt for company-leased vehicles for official and personal use.

Detailed explanation-3: -Perquisites value is actual Expenditure incurred by the employer on the running and maintenance of Car + Salary of Chauffeur + Normal Wear and Tear ( i.e. 10% p.a. of the Vehicle Cost) or Hire Charges.

Detailed explanation-4: -Car maintenance allowance – If the employer-owned car is used by the employee, and the employer reimburses driver’s salary, insurance, maintenance and fuel expenses the taxable value will be Rs 2, 700 per month (car with engine capacity up to 1, 600 cc) or Rs 3, 300 per month (car with engine capacity more than 1, 600cc).

There is 1 question to complete.