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Company Car Policy

This document outlines a company car policy, including: - The policy is offered at management's discretion, vehicles are registered under the company, and employees can purchase the vehicle after 3 years of service. - Employees must maintain the vehicle and carry their ID when driving, and the lease period is fixed at 3 years requiring a 3-year employment commitment. - Vehicle costs cannot exceed an employee's annual salary, and they must have 1 year of service (exceptions possible). - The company pays interest and part of the EMI is pre-tax, plus fuel and maintenance allowances with receipts. - Employees own the car after 3 years of EMIs or can exit early by paying

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Vijay Krishan Gupta
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1K views1 page

Company Car Policy

This document outlines a company car policy, including: - The policy is offered at management's discretion, vehicles are registered under the company, and employees can purchase the vehicle after 3 years of service. - Employees must maintain the vehicle and carry their ID when driving, and the lease period is fixed at 3 years requiring a 3-year employment commitment. - Vehicle costs cannot exceed an employee's annual salary, and they must have 1 year of service (exceptions possible). - The company pays interest and part of the EMI is pre-tax, plus fuel and maintenance allowances with receipts. - Employees own the car after 3 years of EMIs or can exit early by paying

Uploaded by

Vijay Krishan Gupta
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Company Car Policy

Terms and Conditions:

 This policy is not open to every employee and will be offered at the sole discretion of the management.
 Vehicle will be registered in the name of the company.
 Vehicle will be transferred (or sold) to an employee after he completes agreement of this policy.
 Employee is responsible to maintain vehicle in best conditions, including but not limited to, continue
insurance cover of the car.
 While driving the vehicle, employee must keep his ID card with him to prove his identity.
 Lease period will remain fixed for 3 years.
 To enter into Vehicle Lease Agreement, an employee will be required to sign a commitment letter to serve
the company for a period of three years from the date of entering into this agreement.

Eligibility:

 Total cost of the car should not exceed employee’s annual CTC.
 An employee should have been with organization for at least 1 year. This can be granted as an exception
at the sole discretion of the company.

Benefits to Employee:

 Interest on the vehicle loan will be borne by the company.


 Certain part of EMI (Depreciated Value) will be deducted pre-tax, hence saving in income tax. Additionally,
claimed part of fuel and maintenance allowance (subject to production of actual bills).

Calculation for EMI:

Use following EMI calculator, make changes to yellow cells only.

Car Policy
Calculator.xlsx

Exit Conditions:

 An employee completes lease period of 3 years and has paid all his EMI.
OR
 If an employee is willing exit before the expiry of lease period, he would be liable to pay a sum of 1.5
times the remaining value of the car. Remaining value of the car will be calculated as:
Total cost of the card when purchased- Total EMI paid up to exit date

In both cases, vehicle will be transferred in the name of the employee after fulfilling either of the clauses.

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