POLICY DOCUMENT – CAR SCHEME FOR SENIOR MANAGEMENT
1. Introduction
This car scheme is applicable to Managers, General Managers, and Project Leaders. Management reserves the right on applicability of this scheme to any employee.
2. Limit of entitlement
The limit of entitlement is restricted to Rs.2, 70,000/-
The above rates may change based on cost of vehicles in the market. Under certain circumstances, the management can enhance up to a maximum of 10% of this entitlement.
Accessories up to a limit of Rs. 20,000 can be purchased against bills. However, the total cost including accessories cannot exceed the above limits.
3. Recovery
This facility is part of the facilities offered to managerial cadre. Hence, necessary adjustments will be made to the Allowances. These details may be obtained from Finance.
All other payments such as; Insurance etc will also be out of the allowance.
Loan will be adjusted against the following as re-imbursements.
Car Maintenance
A Sum up to a maximum of Rs. 60000 pa can be claimed towards Car Maintenance (Including fuel) against bills. The amount claimed under this item will be out of the Allowance
Driver Salary
A Sum up to a maximum of Rs. 30000 pa can be claimed towards Driver Salary against bills. The amount claimed under this head will be out of the Allowance
4. Conditions
A separate agreement would be signed with the employee at the time of handing over of the Car.
At the end of 3 years the employee would be given possession of the Car.
In case the employee leaves during the period (3 years), the Car would necessarily have to be purchased by the employee by paying the remaining residual amount or the book value appearing in the books of Caresoft Global Private Limited whichever is higher. In addition, all taxes (if any) will need to be paid by the employee.
Employee will take responsibility for requisite actions in case of accident or theft of the vehicle. Employee will have to take responsibility for all major & minor repairs, regular maintenance, etc and such expenses can however be claimed out of the maintenance category subject to the limits specified.
The perquisite value of the car would be added to the taxable salary of the employee as per the prevailing Income Tax rules. Any additional tax liability for the Company will have to be borne by the employee.
After taking delivery, Administration Dept. will retain the original R.C. Book, Insurance policy and the duplicate key. A copy of these documents will be given to the employee.
Administration Dept. would keep track of the insurance and road tax payment and ensure that the same is paid regularly whenever it becomes due. All such payments will be adjusted against the allowance of the employee.
At the end of 3 years or separation whichever is earlier, Administration Dept. will hand over the original documents and the duplicate key to the employee after receiving the full payment from the employee due for the car as per this policy.
All cost incurred on such transfer will be to the employee’s account and will be out of the allowance.
This policy is only for purchase of new cars.
This policy is at the sole discretion of Management.
5. General
If an employee prefers to avail the car option under this scheme, he/she is not eligible for any Company Transport. The utilization is basically towards the annual depreciation for the car, the reimbursements towards petrol, maintenance, driver’s salary, insurance and tax liability to the company on account of this option exercised by the employee.