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Component documentation Car and Conveyance Locate the document in its SAP Library structure

Purpose

This component enables you to process the

        Exemption on Conveyance Allowance

        Perquisite on Car Schemes and driver(s) provided by the company

Integration

The system reads the details for an employee maintained in the Car & Conveyance infotype (0583).

Features

Exemption

        The system processes exemption on the conveyance allowance given to the employee. You must make the following configurations if you want to give a conveyance allowance and exemption to your employees:

        If you require to, you can maintain new conveyance types to suit your company requirements. The SAP System provides you with some default conveyance types. To maintain new conveyance types, go to the IMG under Payroll India Car and Conveyance Define Conveyance Types (V_T7INCA).

        Maintain the wage types for a Conveyance Type and a Pay Scale Grouping for Allowance through the IMG under Payroll India Reimbursements, Allowances and Perks Calculate Eligibility for RAPs (V_T7INA9).

        If you want these wage types to be defaulted in Basic Pay infotype (0008), you must maintain these wage types in table view Conveyance Allowance Eligibility (V_T7INC9), through the IMG under Payroll India Car and Conveyance Assign Eligibility Criteria for Conveyance Allowance.

Note

If you have maintained the wage type in this table view, when you save the Car & Conveyance infotype (0583) record for an employee, a dynamic action is triggered, wherein the system takes you to the Basic Pay infotype (0008). The wage type that you have maintained will get defaulted into the Basic Pay infotype (0008). If it is an INVAL wage type, the amount is also defaulted, else you have to enter an amount here and save the infotype.

        Maintain the conveyance tax exemption limit of these wage types for tax code SCNV through the IMG under Payroll India Tax Tax Liability on Reimbursements, Allowances and Perks Assign Tax Code Limits to Wage Types (V_T7INT9).

Note

You maintain payment wage types for all the Conveyance Types. But, only the Conveyance Type for which you require Exemption under Section 10, you should maintain the wage type entries in table view Taxability of Wage Types (V_T7INT9) for taxcode SCNV.

        In case of a physically challenged employee under section 10(14)(xi), you must maintain an entry for the employee in Challenge infotype (0004) for the Challenge Type Disabled Sec10(14)xi (N1).

        Exemption on Conveyance Allowance is the lesser of:

...

...

                            a.      Actual payment made to the employee for conveyance

                            b.      Exemption limit

         Amount maintained for tax code SCNV in table view Taxability of Wage Types (V_T7INT9).

         Amount maintained in Exemption limit for challenged Constant (CHGEX) of table view Payroll Constants (V_T511P) for a physically challenged employee.

Perquisite

The system processes perquisites on Car Schemes that the employer provides to the employee.

You must make the following configurations to maintain a Car Scheme and calculate perquisite on it:

        You must maintain the car types through the IMG under Payroll India Car and Conveyance Define Vehicle Details (V_T7INC1). The Cubic Centimeter or the Horse Power of the car that you maintain here is used  during the calculation of perquisite.

        The SAP System provides you with some default Conveyance Types. If required, you can maintain conveyance types to suit your company requirements. To do this, go to the IMG under Payroll India Car and Conveyance Define Conveyance Types (V_T7INCA). Select Yes for the Car Detail Flag to define the conveyance type as a Car Scheme. In this case, you can capture the details of the vehicle in the Car & Conveyance infotype (0583). The system uses these details to calculate the perquisite value of the vehicle.

        For a Pay Scale Grouping for Allowance and a Car Scheme, you can maintain the eligibility of an employee for

        The number of cars

        The maximum amount of all the cars. This is based on the price of the cars.

To maintain this, go to the IMG under Payroll India Car and Conveyance Define Amounts and Numbers for Car Schemes (V_T7INC7). The options that you get for the Car Scheme will be the ones for which you have selected Yes as the Car Detail Flag in table view Codes for Conveyance Types (V_T7INCA).

        For a Pay Scale Grouping for Allowance and a Car Scheme, you must maintain the Car Type and you can maintain the maximum age of the car, that an employee is eligible for. To do this, go to the IMG under Payroll India Car and Conveyance Assign Type and Age of Car for Car Schemes (V_T7INC3). The options that you get for the Car Type will be the ones that you have maintained in table view Car Types Master (V_T7INC1).

The system provides you with the following Car Schemes:

        Company Owned Car Scheme (COCS)

In this case, the car is owned by the employer, and can be

        Maintained by the employer

        Maintained by the employee

The perquisite amount for COCS depends on the Cubic Centimeter of the car. These perquisite values are stored in the table view Perk Valuation for Cars (V_T7INC5). This perquisite value is valid only for the first car. Ten percent of the total value of the second and third cars are taken as the perquisite values.

        Own Your Car Scheme (OYCS)

In this case, the vehicle is owned by the employee and is maintained by the employer. The system provides for following types of OYCS:

        Availing Own Your Car Scheme (OYCS)

In this case, the vehicle is a car.

        Own Your Car Scheme Others (OYCS Others)

In this case, the vehicle is an automotive conveyance other than a car.

The perquisite value for Availing OYCS and OYCS Others is the actual expenditure reduced by a particular amount. This particular amount depends on the Cubic Centimeter of the vehicle and is stored in the table view Perk Valuation for Cars (V_T7INC5). Actual expenditure can be the

        Reimbursements made to the employee through Additional Payments infotype (0015) or through Recur. Payments/Deds. infotype (0014).

        Notional reimbursement of the expenditure through Additional Payments infotype (0015) or through Recur. Payments/Deds. infotype (0014), in case the employer incurs the maintenance expenditure directly, for which the employee does not get a reimbursement.

Maintain the actual expenditure wage types for the tax codes,

        SCNE in case of Availing Own Your Car Scheme (OYCS)

        SCNO in case Own Your Car Scheme Others (OYCS Others)

You can do this through the IMG under Payroll India Tax Tax Liability on Reimbursements, Allowances and Perks Assign Tax Code Limits to Wage Types (V_T7INT9).

Note

Legally, the Car Schemes, COCS (Old) and OYCS (Old), are not valid after September 30, 2002. In these cases, the perquisite value is calculated on the Horse Power of the car.

For a Car Scheme, the system calculates the perquisite value for an employee only if the Calculate Perk indicator is selected in the Car & Conveyance infotype (0583).

If the company is providing the employee with a driver or drivers for a Car Scheme, there is a perquisite value attached to a driver. This perquisite amount for a driver is stored in the table view Payroll Constants (V_T511P)

        Perk value of driver Constant (DRVP1) – Valid for the payroll period from October 1, 2001 onwards.

        Perk value of driver (old) Constant (DRVPK) – Valid for payroll period until September 30, 2001.

See also:

Exemption and Perk Calculation for Car and Conveyance

Car & Conveyance infotype (0583)

 

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