Case Law Details
Case Name : In re Tvl.Faiveley Transport Rail Technologies India Private Limited (GST AAAR Tamil Nadu)
Related Assessment Year :
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In re Tvl.Faiveley Transport Rail Technologies India Private Limited (GST AAAR Tamil Nadu)
In the case of Tvl.Faiveley Transport Rail Technologies India Private Limited vs. GST AAAR Tamil Nadu, the core issue is the GST applicability on the car lease facility provided to employees. The appellant contends that this facility is a perquisite under the Income Tax Act, 1961, and therefore should not attract GST. This article provides a detailed analysis of the arguments presented, the statutory provisions involved, and the final conclusions drawn by the GST AAAR.
Detailed Analysis
1. Background an...
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To justify the their stand and avoid GST liability the employer should have opted following procedures:-
The amount recovered from employees towards payment of lease rent could have been shown as refundable security deposit against free car provided and lease rent paid by employer to lessers company should have been debited in their P&L as lease rent paid. In such way the liability .
The refundable security would remain with employers for 4-5 years and gradually be adjusted with Bonus etc.after transfer of car in employee’s name .
In this way could be averted the situation up to an extent.