Objektdokumentation Car and Conveyance Infotype (0583) Dokument im Navigationsbaum lokalisieren

Definition

With the Car and Conveyance Infotype (0583) you create and maintain the information related to the conveyance types used by each employee.

 

Use

The tax liability of each employee, for the benefit of a company provided car or a conveyance type, is based on:

® Tax Liability on Reimbursements, Allowances Perks

® Define Tax Codes

® Assign Tax Code Limits to Wage Types

From a hiring action, you can create records for new employees from the Car and Conveyance Infotype (0583).

Hinweis

In case your employees’ details change, you can create new car and conveyance records in the master data by delimiting the old records and making changes with a new validity period for the record, or by changing the existing record.

Update the Infotype record, in case:

 

Structure

The entries you make in the Car and Conveyance Infotype (0583) indicate the type of conveyance the employee uses. All employees would use one of the selections as follows:

This benefit is used for company owned vehicles provided to the employee. A perquisite value is computed on the car based on the Horse Power of the car. This is not valid after 31st October 2001.

The system provides for a maximum number of three cars under this scheme. You can define the number of drivers and whether the perquisite needs to be computed for the car or not by selecting the Calc. Perk indicator. This is used in case the car is provided solely for the official use of the employee.

The benefit is either available as a full loan to purchase a car or as a partial amount deduction for a few years with a buy back option at the end. A perquisite value is computed on the car based on the Horse Power of the car. This is not valid after 31st October 2001.

The car is normally owned by the employer, in which case the perquisite value can be computed for the car on the premise that it is used partly for official and partly for personal purposes.

You can also store the number of company provided drivers. The system computes the employee’s income tax liability on this perquisite.

This is to be used in the context of the perquisite changes as per the income tax rules where the car is used partly for official and partly for personal purposes. This applies to the first car. The perquisite value is computed depending on the size of the car measured as per its engine capacity.

In case one or more additional cars are provided, then the original cost of that car can be stored in the Vehicle Price field which is used for the computation of the car perquisite in addition to any other expenditure incurred by the employer.

This is used where the employer provides a car for the use of the employee, but the running and maintenance expenses are met by the employee. The perquisite value is computed depending on the size of the car measured as per its engine capacity and the use the car is put to.

This option is to be used where the car is owned by the employee and the employer bears the running and maintenance expenses. Based on the expense incurred, the purpose for which such expense is incurred, the perquisite value of the conveyance is computed as the excess of the expenditure (which is stored in a wage type), over the limit specified as per the Income Tax Rules.

Under this option, the employer bears the running and maintenance expenses for a vehicle other than a car, owned by the employee. Depending on the expenditure incurred by the employer, the perquisite value of the vehicle is computed when it exceeds the limit specified as per the Income Tax Rules.

For each of the above car schemes, you can maintain additional car details such as:

  1. the type of car (used to define a list of cars that each Pay Scale Grouping for Allowances is eligible for)
  2. the date of registration of the car (to define the maximum age of the car that can be allotted to an employee)
  3. the vehicle price (used to control the maximum original cost of the car / cars that an employee in a Pay Scale Grouping for Allowances can be eligible for).

Use this scheme where the employee commutes to work and back using a company provided bus or similar conveyance.

This scheme is used where the employees use their own four wheeler to commute to work. The employer may provide an allowance or a reimbursement for the running and maintenance expense of the vehicle, which is defaulted in the Basic Pay Infotype (0008).

This is used where the employees use their own two wheeler to commute to work. The employer normally provides an allowance for its running and maintenance expense of the vehicle, which is defaulted in the Basic Pay Infotype (0008).

 

Hinweis

An employee can avail of only one conveyance scheme at a time.

You can configure additional conveyance types in Car and Conveyance Infotype (0583). The values for these can be set up in customizing from Payroll India ® Car and Conveyance ® Define Conveyance Types. Herein, whether car details such as type of car is applicable, can be configured for the conveyance type. The wage types are defaulted in Basic Pay Infotype (0008) only after the employee’s Car and Conveyance Infotype (0583) record is created.

The conveyance allowance is a separate amount given to employees to commute to and from office and the wage type applicable can be defined through the customizing settings.

 

Integration

If an employee decides to change the car scheme used due to some change in eligibility, you need to create a new record to reflect these changes after delimiting the old record.

Effect on Tax

Employees receive an exemption on the minimum eligibility amount and exemption limits. In cases of physically challenged employees, you can customize this exemption limit from in the Payroll constants view for the CHGEX constant used as limit in such cases.

Hinweis

The challenge data is read from the Type of challenge field in the Challenge Infotype (0004). See the challenge types in the IMG under Personnel Management -> Personnel Administration -> Personal Data -> Challenge -> Define type of challenge.

The conveyance allowance is normally exempt from tax (as per the Income Tax Act) up to a limit, but can be configured by the employer wage types for Car and Conveyance.

You can compute the perk value for each car by selecting an indicator in the Car and Conveyance Infotype (0583). The number of drivers provided by the company, add to the perquisite value for the employee, which is also taxable. After 1st October 2001, the salary paid to drivers provided to the employee other than the first is to be captured as a cost and taxed fully.

 

Example

An employee Ms. Sreesha belongs to the pay scale groupings for allowance ‘AM02’ which makes her eligible for two cars. She is eligible to choose any type of cars from the following:

Together the cars must not cost more than the eligible amount of Rs. 600,000. If Ms. Sreesha avails of the company owned car scheme, her conveyance allowance could be fixed at Rs. 6000 per month as per the eligibility set for the Pay scale grouping for allowances 'AM02' and COCS.

You create the infotype record for Ms. Sreesha with the conveyance type COCS and store the car details. The details include the car type, registration date, car value and the number of drivers provided if any.

When you saving this record, her eligibility of Rs. 6000 is dynamically stored in the Basic Pay Infotype (0008).

 

See also:

 

StrukturlinkCar and Conveyance