Company Car

Scheme
Company Car Scheme (CCS) – Entitlement for HO, RO Employees

Eligibility and Entitlement

Guidelines
Treatment of cases, wherein employees have their own car
and wish to opt for the scheme
Procedure

Fuel, Driver Salary & Vehicle Maintenance

Prerequisite Value & Taxation

Transfers

General Guidelines & Contact Details

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Company Car Scheme (CCS) – Entitlement for HO, RO Employees

Previous Policy (for ref.) New Policy

Designation Car Entitlement Car Entitlement
Max. Limit* (Gap to be self-funded)
(INR) (INR)
General Manager 10 L 14 L 21 L

Assistant Vice President 12 L 17 L 25 L

Vice President 15 L 21 L 32 L

Senior Vice President 18 L 25 L 38 L

Deputy President 20 L 32 L 48 L

President 25 L 40 L 60 L

Director 35 L 56 L 84 L
The car cost includes basic price, all applicable taxes, accessories, RTO tax, registration, insurance & other incidental expenses.
*The employee will be entitled to buy the car upto a maximum limit of 50% of their new car entitlement limit. However, the
additional amount/gap to be self funded by the employee as upfront payment.

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Eligibility & Entitlement

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Eligibility

1 This policy will cover those employees who are working in India at the level of
General Manager and above and placed at the Head Office / Regional Offices.

2 It is not applicable for employees of GM & above level who are working at
project sites.

3 This policy will apply to the existing employees as well as to new joiners.

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 Guidelines

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Guideline

25% of the car entitlement amount will be deducted from the employees’ salary for the first 36 months as EMI. The EMIs Insurance
1 paid by the employee will be non-refundable and non-interest bearing. Cost
75% of the car entitlement amount will be recovered from the employee over a period of 5 years by the company. To be borne by employee
2 2nd year onwards (part of
Vehicle Maintenance
However Existing subscriber (Employees) whose car renewal term is coming ahead or are planning to take a car under
Allowance).
Company Car Scheme is only have to pay 25% of new car limit amount to be recovered in 36 months as EMI.

The employee will have the option to apply for a car upto a maximum limit of the entitlement table. The difference
3 amount (Car Value – New Policy car entitlement) will be paid upfront by the employee.
Transfer
The car will be purchased in the name of the company, and it will be held in the name of the company for 5 years, after Cost
4 which it is transferred in the name of employee. Any request by the employee to transfer the car before expiry of this
To be borne by employee
period will not be considered.
at the time of car
ownership transfer
In case an employee leaves the organization before the completion of 5 years of services from the date of purchase of car,
5 he/she is bound by a service agreement. Further, they will have to take away the car at the written down value (WDV) as
per the income tax provisions (WDV will be calculated based on current rate of depreciation @15% p.a.)

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In the long run…

1 The company will bear the cost of insurance for the first year. From the 2nd year onwards, the insurance cost will be
borne by the employee (will be recovered as part of Vehicle Running and Maintenance allowance).

2 The employee has an option of applying for a new car after the completion of 5 years and smooth / successful
transfer of ownership of the car, subject to submission of all documentary proof.

3 Transfer of car in the name of the employee will be done only after 5 years from the date of allotment of car to
employee under this scheme. Any request by the employee to transfer the car before expiry of this period will not be
considered unless there is a proper reason and justification and the same is approved by MD & CEO in advance.

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What happens if you leave the organization ?

• In case an employee leaves the organization before the completion of 5

years of services from the date of purchase of car, he/she is bound by a
service agreement.

• Further, he / she will have to take away the car at the written down value
(WDV) as per the income tax provisions (WDV will be calculated based on
current rate of depreciation @15% p.a. based on reducing balance
method) at the time of leaving.

• It means that the employee will have to pay the amount of difference
between the depreciated value of the car and the aggregate amount of
EMI already paid by the Employee to the company.

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Treatment of cases, wherein
employees have their own
car and wish to opt for the
scheme

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Treatment of cases, wherein employees have their own car and wish to opt for
the scheme
In cases where an employee already has/owns a car and becomes eligible to avail of a car under the company scheme, such
an employee would be allowed to convert / transfer their own car under the Own Your Car Scheme.

1 The 5-year period starts only from the day of eligibility i.e., the date on which car is transferred to Company’s Name.

2 Depreciated value of the car would be worked out @ 15% per annum from the date of purchase till start date and the
amount would be paid back to employee or Bank.

3 Corporate RTO charges would be part of eligible amount.

In case an employee has taken a loan from the Bank, it will be employee’s responsibility to request bank for the
4
transfer of the car on company’s name and communicate to the company and in turn company would restructure the
loan as per eligibility.

5 In case an employee leaves the organization before completion of 5 years of services from the date of procuring car
for them, they will have to pay the written down value (WDV) and buy the car while leaving and WDV will be
calculated in accordance with individual car limit proportionately and would be recovered from the employee. In no
case the car will be taken back by the company.

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 Procedure

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Procedure

1 The eligible employees interested in opting for the company car under the CCS scheme can submit application in the
prescribed format duly approved by HoD/BUH, along with the Proforma Invoice for Car Make / Type / Model
selected. Employee will have to execute an Undertaking / Acknowledgement / MOU and submit the same to Admin
Department.

2 The admin department will obtain approvals from appropriate authorities and process the application. On
procurement of the car, allotment letter will be issued to an employee by HR department along with policy copy and
individual to acknowledge it.

3 The Car shall be initially registered in the name of company and shall be transferred to the employee on completion
of five (5) years.

4 Transfer Cost (including any registration charges), if any, for transferring the car in the name of employee shall be
borne by the employee. At the option of the employee, car may be transferred to any other person nominated /
assigned by him.

5 The Original RC book, Insurance policy and other relevant documents shall be kept with the company till vehicle is
transferred in the name of concerned employee and the same can be referred to, in case of any requirement.

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Fuel, Driver Salary & Vehicle
Maintenance

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Fuel, Driver Salary & Vehicle Maintenance

1 Fuel, Driver salary, Vehicle maintenance limit prescribed in individual grade is subject to actual usage and will be
considered on monthly basis under the head of “Vehicle Running & Maintenance” allowance component in employee
CTC as per defined limits. Individual has to submit the logbook on usage of fuel facility. In absence of logbook the
proportionate tax will be deducted in lieu of fuel amount. Individual can submit the bills of maintenance, driver salary
and fuel on or before 25th of every month through HR Portal (ESS) and same will be credited in his salary. In case he
does not submit the bill in the current month, he can submit bills in next month cycle.

2 The employee will be required to maintain the car in good condition & incur all running costs including costs of
lubricants, spares, tyres & tubes, periodical servicing, accident work etc., as required from time to time.

3 Any eligible amount, which is not paid till the financial year end because of non-submission of bill, same will be paid
to the individual in March month with deduction of necessary tax.

4 Once the Company Car is opted under this Scheme, the concerned employee is expected to utilize the same for all
the official purposes.

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 Perquisite Value and
Taxation

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Perquisite Value and Taxation

1 Perquisite value of Car for the purpose of tax deduction at source under Income Tax will be considered as per
prevailing provisions of Income Tax Act and Rules in this regard.

2 WDV shall be calculated taking depreciation @ 15% p.a. from the date of purchase till start date

3 Employees will have to maintain the logbook and same is to be submitted to Taxation Department on Quarterly Basis

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 Transfers

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In case of Transfers…

1 In case of inter-location transfers, transfer charges/cost will be borne by employee in both cases - wherever transfer is
initiated by the company and where transfer is initiated by employee himself.

2 The concerned employee can contact the Admin Department at Head Office to seek assistance in the process of
transfer and for necessary formalities.

3 In case of transfers to a subsidiary / affiliate / sister company, the car can be assigned to the new company wherever
the new company also has an agreement for the same.

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General Guidelines and
Contact Details

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General Guidelines and Contact Details

1 Company Car Scheme will be coordinated by the Admin Department at Head Office, for employees at all locations in
India. The department shall maintain an MIS pertaining to the scheme

2 All clarifications with regards to the scheme can be obtained from HR Department. All suggestions for improvement
of the scheme should be addressed to HR Department. The policy deck will be available at Fusion – ESS portal.

3 Depending upon Company’s financial situation, company may decide to allot phase-wise car to the eligible
employees.

4 The eligible employees posted at sites would be provided company vehicle to carry out the official duties and thereby
they are not covered under this scheme

5 Once the cars are given to the employees, they are required to utilize the same for all official purposes and any
additional car/Vehicle would not be given for the same.

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General Guidelines and Contact Details

6 The original papers of the car including the RC book/ Smart card will remain in the possession of company till the
time the vehicle is officially transferred to concerned employee’s name.

7 The employee shall take all necessary steps to ensure that the car is well maintained in road worthy condition at all
times

8 Revised policy is effective from 01st Jan 2023. Employees who have availed this benefit before this revision will be
governed by previous policy (Company Car scheme) till the expiry of their tenure as per the policy.

9 For any queries, please contact the Corporate HR & Admin Team and drop your queries at
[email protected]

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For additional info and/or detailed policy documents kindly go
to ESS Portal or
write to us at: [email protected]