Exemption and Perquisite Calculation for Car
and Conveyance
· Exemption on Conveyance Allowance
· Perquisite on Car Schemes and driver(s) provided by the company

Perquisite on Car Schemes and driver(s) provided by the company is valid only till financial year 2004 – 2005.
Import Car and Conveyance Detailspayroll function (P0583) reads the following objects and generates the CCO cluster table:
· Car & Conveyanceinfotype (0583)
· Challenge infotype (0004) for the Challenge Type Disabled Sec10(14)xi (N1) - If an entry exists for this Challenge Type, the payroll function reads Exemption limit for challenged constant (CHGEX) of table view Payroll Constants (V_T511P) for the exemption limit.
· Table view Perk Valuation for Cars (V_T7INC5) for the perquisite values of a Car Scheme, in case the indicator for perquisite calculation is selected in the Car & Conveyance infotype (0583)
· Table view Payroll Constants (V_T511P), for the perquisite value of the driver, in case there is an entry for the number of drivers in the Car & Conveyance infotype (0583)
¡ Perk value of driverconstant (DRVP1), for the payroll period from October 1, 2001 onwards
¡ Perk value of driver (old) constant (DRVPK), in case the payroll is being run for the period before October 1, 2001.
Car & Conveyance - India (INCCO) payroll function reads the internal table CCO and generates the following exemption and perquisite wage types:
· Ann car perk wage type (/3C1)
This is the annual perquisite value on car. The value of this wage type is projected for the entire financial year. The system generates this wage type in case of COCS or OYCS, where the indicator for perquisite calculation is selected in Car & Conveyance infotype (0583). The value of this wage type gets cumulated into the Annual Perk wage type (/127).
· Ann driver perk wage type (/3C2)
This is the annual perquisite value on driver provided by the company. The value of this wage type is projected for the entire financial year. The system generates this wage type in case of COCS or OYCS, where there is an entry for the number of drivers in the Car & Conveyance infotype (0583). The value of this wage type gets cumulated into the Annual Perk wage type (/127).
· Convey amt monthly wage type (/3C3)
This is the monthly conveyance allowance paid to the employee through Basic Pay infotype (0008).
· Conveyance monthly exemp. wage type (/3C4)
This is the monthly exemption provided to the employee on the conveyance allowance. The value of this wage type is projected for the entire financial year and added to the value of this wage type in the Cumulative Results Table to generate the Conveyance Annual Exempt wage type (/4E3).
· Perk from Act Expn OYCS wage type (/3C5)
This is the actual expenditure incurred by the employer for an Availing OYCS Car Scheme, reduced by the standard tax exempt amount (stored in table view Perk Valuation for Cars (V_T7INC5)). The value of this wage type is calculated on a monthly basis. The year-to-date value of this wage type is cumulated into Ann car perk wage type (/3C1).
· Perk from Act Expn OTHERS wage type (/3C6)
This is the actual expenditure incurred by the employer for an OYCS Others Car Scheme, reduced by the standard tax exempt amount (stored in table view Perk Valuation for Cars (V_T7INC5)). The value of this wage type is calculated on a monthly basis. The year-to-date value of this wage type is cumulated into Ann car perk wage type (/3C1).
· Conveyance Annual Exempt wage type (/4E3)
This is the annual exemption provided to the employee on the conveyance allowance. The value of this wage type gets cumulated into the Exemption U/S 10 wage type (/130).
You can configure the HR_IN_CCO_PROCESSING Business Add-In (Add-In), to define a different method of calculating perquisite and exemption. To do so, go to the IMG under Payroll India ® Car and Conveyance ® Add-In: Perquisite and Exemption Processing.
See also:
Car & Conveyance infotype (0583)