8/12/2016 REVISEDCARSCHEME

REVISEDCARSCHEME(M1BM3C)(wef01/04/2010)
Check your Eligibility

ManagementhasrevisedtheCarSchemeforCovenantedM1BtoM3C,asunder

1 IthasbeendecidedbytheManagementtorevisetheCarSchemeforEligibleemployeesinTier1,Tier2
andTier3withimmediateeffect.ThecarwillhenceforthbepurchaseddirectlybytheCompanyandnot
leasedthroughanyFinanceCompany.TheSchemewillbeknownastheCompanyOwnedCarScheme
(COCS).Consequently,CompanyLeasedCarScheme(CLCS)standswithdrawnexceptforthosewhoare
alreadyinCLCS.

AspertherecentcircularissuedbytheManagementonDec01st,2009onusageofdieselcarunder
companycarscheme.IthasbeendecidedbytheManagementtopermitpurchase/usageofDieselcars,
SportsUtilityVehicles(SUVs)andMultiutilityVehicles(MUVs)undertheCompanyCarSchemewith
effectfromJanuary1,2010.

SincethepriceofdieselinIndiaislowerthanthepriceofpetrol,employeeswhooptforadieselcarwill
receivealoweramount.Hence,weshouldencourageemployeesnottochooseadieselcarandpermitit
onlyaftertheyaremadeawareoftherepercussions.

Incasethestaffhaspurchased/usingadieselcarhewilleligibleforreimbursementofdieselamount
only.

TheFinanceAct,2009hasreintroducedperquisitevaluationoncertainbenefitstoemployeesincluding
reimbursementofcarexpenses.Theeffectofthisisthatemployeeswhoareprovidedacarbythe
companypaysometax(Rs.300toRs.550p.m.)dependingontaxslab,whileemployeeswhoownacar
butarepaidcarrunningexpensesbythecompanypayamuchhighertax.Whilethecompanycannot
takeoverthisburden,ithasbeendecidedtohelpemployeespartiallytomitigateitseffect.

2 COMPANYOWNEDCARSCHEME(COCS)

2.1 Base&MaximumLimit

ThecarunderCOCSwillbepurchasedbyandregisteredinthenameoftheCompany.Followingwill
betheBaselimitsandMaximumlimitsforcarsunderthisScheme(inclusiveofregistrationcharges)
:

Grade BaseLimit(BL) MaximumLimit(ML) ExtendableLimit(EL) Costof

Accessories*
M1B 2.85 5.50 6.50 0.10
M1C 2.85 5.50 6.50 0.10
M2A 3.60 5.50 7.50 0.10

2.2 RefundableDeposit

CompanyFinanceAmount(CFA)=(BasePrice+RegistrationCharges/OneTimeTax/RoadTax+VAT+
OctroiCharges+OnetimeServiceCharges+Accessories)(CorporateDiscount)

BL=BaseLimit

Grade RefundableDeposit RefundableDeposit+AdjustableDeposit

CFA<= CFA>BLand CFA>MLandCFA<=EL CFA>

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CFA<= CFA>BLand CFA>MLandCFA<=EL CFA>
BL CFA<=ML EL

RefundableDeposit:15%ofBL+100%(ML
15%of 15%ofBL+100% Not
M1BM2C BL)
CFA (CFABL)
Allowed
+AdjustableDeposit:100%(CFAML)

2.3 COCSPeriod

ThenormalCOCSperiodisfor5years.InordertomitigatethetaxburdenasperthetheFinanceAct
2009,thestaffcancontinueinCOCStillhe/shebecomeseligibleforReentry.Iftheemployeeopts
forEOCS,hewouldbearhighertax.
2.4 Eligibility

EligibilityforFirstEntry/ReentrytotheSchemeisnotautomatic.Entry/ReEntrywouldbe
consideredbytheManagement/CarCommitteebasedon

Performanceandpotentialoftheapplicant
AvailabilityofBudget
EligibilityasperRules

EligibilityforEntryintoCOCS

StaffmemberswhoaremeetingthefollowingcriteriawouldbeeligibleforentryintoCOCS,subjectto
therecommendationbyCarCommittee

MLPswithaverageFAIRrating Otherswithaveragefairrating
Cadre
notlessthan notlessthan
M1B&M1C 5 6
M2AtoM3B 3

Reentrywillbepermittedsubjecttotheaboveafterthecompletionofnumberofyearsinthescheme
asgivenbelow:

CovenantedM2AtoM2B:9years

However,inexceptionalcasesthereentryperiodindicatedabovewillbereducedorincreasedbased
ontheFAIRaveragerating.Toknowthereentryapplicableforyou,KindlycontactHQOCHR

2.5 Insurance&ServiceCharges

CompanywillpayonetimeservicechargesatactualssubjecttoamaximumofRs.2500/andAnnual
InsurancechargestilltheexpiryoftheCOCSperiod.

2.6 GuidelinesforentryintoCOCS (referAnnexureA)(gotoAnnexuresgiveninthebottom)

2.7 Settlementofduesandclosureofthescheme
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8/12/2016 REVISEDCARSCHEME

GuidelineonclosureofCOCSaregiveninAnnexureB(gotoAnnexuresgiveninthebottom)

2.8 ReimbursementofFixedandVariableMaintenanceExpenses

EmployeescoveredintheCompanyLeasedCarSchemeshallbereimbursedmaintenance
expensesandpetrolexpensesasperpara4below.

3 EMPLOYEEOWNEDCARSCHEME(EOCS)

3.1 Eligibility

StaffmembersInCovenantedM1BtoM3B,areeligible,subjecttorecommendationbyCar
Committee.
3.2 CarLeaseRentalAllowance

CarLeaseRentalAllowance(CLRA)foreligibleemployeesinCovenantedGradesM1BtoM3B,as
under:
3.2.1 Eligibility

EmployeesinCovenantedM1BtoM3BwhoareeligibleforentryintoCOCSbutoptnotto
takeacarundertheCOCSandusetheirowncaronCompany'sbusiness.
EmployeesinCovenantedM2AtoM3BwhoareeligibleforreentryintoCOCSandprefer
nottoreenterthesame.
Inordertomitigatethetaxburdenthefollowingchangeshavebeendonew.e.f
01/04/2010

CLRAcurrentlybeingpaidwillcontinuetobepaidwithoutchange,butwillberenamedas"Additional
CLRA"
AFixedamount,underthehead"CLRA",willbepaidtoallemployeesunderEOCS.Paymentofthe
thisCLRAwillbeautomaticallyprocessedbySSCbasedontheemployeebeinginEOCS

3.2.2 Limits

AdditionalCLRA
Grade CLRA(Rs.P.M.)
(Rs.P.M.)

CovM1B 950 5000

CovM1C 950 5000

CovM2A 1650 6700

Thesechangeswillbeeffective1stApril2010andwillbereflectedinthesalaryslip/reimbursementclaimforApril
2010onwards

Inrespectofemployeeswhocontinuetobeontherollsofthecompanyason15thApril2010andhavenotsubmitted
theirresignationasonthatdate,thecompanywillalsoadditionallypaytheamountsasapplicablefortheperiodApril
2009toMarch2010,alongwiththepaymentforApril2010.

TheTaxLiabilityonthispaymentwillbeontheemployeeconcerned

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3.3 ReimbursementofFixedandVariableMaintenanceExpenses

EmployeescoveredintheEmployeeOwnedCarSchemeshallbereimbursedmaintenanceexpenses
andpetrolexpensesasperpara4below.

4 ReimbursementofFixedandVariableMaintenanceExpenses

4.1 FixedMaintenanceExpenses
TheFixedMaintenanceExpensespayableunderbothCOCSandEOCSforagivengradehavebeen
equalizedandhenceforthitwillbebasedonthelocationasfollows:

FixedMaintenanceExpenses(Rs.p.m.)

(forCOCS/EOCS)

Grade

KOLKATA
MUMBAI/DELHI /CHENNAI/ O THERLOCATIONS
BANGALORE

CovM1B 4400 4350 4300

CovM1C 5000 4950 4900

CovM2A 5100 5050 5000

Thesechangeswillbeeffective1stApril2010andwillbereflectedinthesalaryslip/reimbursementclaimforApril2010
onwards

Inrespectofemployeeswhocontinuetobeontherollsofthecompanyason15thApril2010andhavenotsubmittedtheir
resignationasonthatdate,thecompanywillalsoadditionallypaytheamountsasapplicablefortheperiodApril2009toMarch
2010,alongwiththepaymentforApril2010.

4.2 VariableMaintenanceExpenses

TheReimbursementofPetrol/DieselExpensesshallbeLitresofpetrol/dieselpermonth,fixed
gradewise.ThiswillreplacetheconceptsofKilometerLimitandEfficiencyLimit.TheP&OD(HQ)shall
fixtheLitresofpetrolapplicableforeachemployee.

TheLimitrangeofReimbursementofPetrolExpensesshallasfollows:

Petrol/Diesel
Grade
Litresp.m.
CovM1B 50
CovM1C 64
CovM2A 72

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TheformulathatshallbeusedtocalculateReimbursementofPetrol/DieselExpenses:

LitresofPetrol(foreachgrade)XPrevailingpetrol/dieselprice

Incasethestaffhaspurchased/usingadieselcarhewilleligibleforreimbursementofdiesel
amountonly.

5 Reductionwhenemployeesisonleave(forCOCS&EOCS)

Outofthetotallitresofpetrolsanctioned,notlessthan10%willbedeemedtobelitresforpersonaluse.
IftheemployeeisonleaveandwhentheCarisnotinuseonCompany'sbusiness,thelitresofpetrolwill
bereducedproportionatelyfortheperiod.Thisdeductionwillberestrictedtoabsenceinexcessofseven
daysonly.However,thefixedexpenseswillbereimbursedinfull,withoutdeduction.Formulafor
calculatingthereductionis:

(NoofDaysleave7)*(TotalLitresofpetrol/dieselsanctioned/Noofdaysinthemonth)
6 Expensesforusingcartocoverupcountrydistance(forCOCS&EOCS)

Iftheemployeecoversupcountrydistance(outsidecitylimits)oncaronCompanysbusiness,he/shemay
submitaseparateclaimintheprescribedformtotherespectiveP&ODDepartment(AnnexureI).Therate
ofreimbursementshallbeasfollowing.

Forevery100KMsCovered:

LitresofPetrol/Diesel
Grade
Reimbursed
CovM1B 8
CovM1C 8
CovM2A 8

7 TransferofCartoEmployee(underCLCS):

ThecurrentpracticeoftakingthecarunderEOCSonexpiryoftheprimaryleaseperiodstandswithdrawn.

EmployeeunderCLCSwillcontinueintheschemetilltheexpiryofprimaryleaseperiod.Attheendoftheleaseperiod,thecarwillbe
takenonasecondaryleasefor3years.IftheemployeeiseligibleforandoptsforreentryintoCOCS,thesecondaryleasewillbe
foreclosed.

Transferofthecartotheemployeewillbedone@7.5oftheoriginalvalueofthecarattheendoftheeightyears.Ifitistobedone
beforetheexpiryofeightyears.Thetermsandconditionsasagreedwiththeleasingcompanywillbefollowed.

8 TransferofCartoEmployee(underCOCS):

Inviewofthechangesbeingintroducedtomitigatethetaxeffect,transferwillnowbedoneatthefollowingrates:
Attheendof5years:15%
Attheendof6years:12.5%
Attheendof7years:10%
Attheendof8years:7.5%

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Annexures

ClickheretoprinttheApplicationForm

AnnexureI

CAREXPENSEAPPLICATIONFORM
Forusingcarincompanysbusinesstocoverupcountrydistance

TobesubmittedtorespectiveP&ODDepartmentDate

Name______________________P.S.No.___________Grade:__________

JourneyFrom____________________To________________

Distancecovered____________DateofJourney______________
(TotalDistanceinKMs)

__________________
EmployeesSignature

AddlLitresofPetrol
Santioned_____Litres RateofPetrolRs.________ AmountRs.________

_________________
AuthorizedSignatory

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