Policy on Car Related Benefits

Transcription

1 Policy on Car Related Benefits 1 OBJECTIVE 1.1 To elucidate the eligibilities, procedure and guidelines governing Car Related Benefits. 2 SCOPE 2.1 This policy is in effect from 1 st July, 2014 and applicable to all Officers in the management cadre and on permanent rolls of Tata Power and its select group of companies (as listed Annexure I). 3 PROCESS 3.1 Eligibility: a) Rupee Value Eligibility: Grade-wise eligibility of Officers for car related benefits is as follows: Work Ex-showroom Monetized Reimbursements towards Level price of Car (in ` Lakhs) Value of Car (in ` per month) Maintenance (in ` per month) Fuel (in ` per month) Driver Salary (in ` per month) MA 15 33,360 5,000 19,000 12,000 MB 10 22,420 4,000 16,000 11,000 MC 8 18,000 3,500 14,500 10,000 MD 6 13, * 9,500* 5,000* ME NA NA 2,000* 8,000* NA *- The car related benefits would be suitably factored in the present CTC structure of the Officers availing this facility NA denotes Not Applicable

2 b) Type of Scheme: An Officer availing the option of company allocated car can opt for any one of the following schemes: Type Scheme A Scheme B Brief Details In this scheme, maintenance would be carried out by the leasing partner Maintenance component will be paid in the lease rental In this scheme maintenance would be taken care by the Officer concerned Maintenance component is not included in the lease rental 3.2 Procedure a) Company Allocated Car i. Eligible and interested Officers to submit duly filled form C-2 (Annexure III) to their respective ES&A lead. ii. iii. iv. Concerned ES&A lead to verify the form and forward the same to Head ES&A for procurement of vehicles who shall seek quotes from the leasing partner. The said quote would be forwarded to the Officer concerned for confirmation by Head ES&A. Only after the confirmation is received from the Officer concerned, the vehicle would be procured. Upon successful procurement, ES&A Corporate team shall intimate the respective ES&A lead to handover the vehicle (to the Officer concerned) and provide appropriate payroll inputs. v. Payroll team shall do necessary adjustment in the Officers monthly remuneration in line with the inputs received, for the duration of the lease. b) Personal Car i. Eligible and interested Officers to submit duly filled form C-1 (Annexure II) to their respective ES&A lead along with proof of ownership of vehicle.

3 ii. iii. Concerned ES&A lead to verify the form and shall provide necessary payroll inputs. It will be the responsibility of Head ES&A to maintain a central database of all such requests. Payroll team shall do necessary adjustment in the Officers monthly remuneration in line with the inputs received, for the duration specified. c) Maintenance Reimbursement i. Officer concerned to put up an application in the Employee Payment Officers system on Sangam, if applicable. ii. iii. iv. The Officer concerned to attach relevant maintenance bills and submit the same to ES&A Corporate team for reimbursement. ES&A Corporate team shall verify the bills and post verification, submit the same to Payroll team for payment processing. In case of discrepancy, the bill would be returned back to the Officer concerned for correction. Reimbursement towards maintenance bills would be processed by the Payroll team and shall reflect in the next payable salary. d) Fuel Reimbursement Petro Card i. In case of Officers availing the facility of Petro Card, payroll input towards usage of Petro Card, allotted to the Officer, would be provided by ES&A Corporate team. ii. Payroll team shall make necessary adjustments, in line with the inputs provided, in the concerned Officer s monthly remuneration. e) Fuel Reimbursement Physical Bill i. Officer concerned to put up an application in the Employee Payment Officers system on Sangam, if applicable. ii. iii. The Officer concerned to attach relevant fuel bills and submit the same to ES&A Corporate team for reimbursement. ES&A Corporate team shall verify the bills and post verification, submit the same to Payroll team for payment processing. In case of discrepancy, the bill would be returned back to the Officer concerned for correction.

4 iv. Reimbursement towards fuel bills would be processed by the Payroll team and shall reflect in the next payable salary. f) Driver Salary Reimbursement i. Officer concerned to put up an application in the Employee Payment Officers system on Sangam, if eligible. ii. iii. iv. The Officer concerned to attach the Personal Driver Undertaking and submit the same (to ES&A Corporate team) for reimbursement. ES&A Corporate team shall verify the bills and post verification, submit the same to Payroll team for payment processing. In case of discrepancy, the bill would be returned back to the Officer concerned for correction. Reimbursement towards driver bills would be processed by the Payroll team and shall reflect in the next payable salary. 4 GUIDELINES 4.1 General Guidelines a) An Officer can opt for any one of the two available modes of procurement (Scheme A or Scheme B). The details of these modes are elucidated in the subsequent section of this policy. b) The lease period (for both Scheme A and Scheme B) is 60 months (5 years). Upon completion of lease, it is mandatory for the Officer concerned to buy the company allocated car at rates specified at the time of procurement of the car. c) In case of superannuating Officers, the company may enter into a leasing period of less than 60 months, as appropriate. d) The company shall procure vehicles from company registered leasing partner(s) only. e) Eligible Officers can also opt for second hand / pre-used cars certified by Original Equipment Manufacturers (OEMs). The decision to take up such a car would be at the discretion of management on a case to case basis, approved by Head ES&A. f) A car once allotted, shall remain with the concerned Officer till the time of completion of the lease period, irrespective of change of grade on promotion.

5 However, on promotion, the officer will be entitled to receive car related benefits as applicable to the promoted grade. Hence, the difference towards monetized value of car, maintenance, fuel and driver salary will be cashed out (if applicable, as considered in CTC of the promoted grade). g) Those availing Company car scheme, if the vehicle is grounded for repairs / maintenance, no replacement vehicle will be provided by the company. However, for Officers in WL MA and above only, availing Scheme A, the replacement vehicle will be provided by the leasing company. Charges, if any, towards the same would need to be borne by the Officer concerned. h) Parking and toll charges for official visits will be reimbursed at actuals for Company Allocated Cars only. i) In case an officer has availed Car Loan under the existing Loan Policy, he / she will have to settle the same before joining this scheme. j) Officers presently in a car scheme other than the ones mentioned in this policy shall continue in the old scheme till such time their car is due for replacement, after which they would be eligible to join either of the schemes as mentioned in this policy. Officers who have availed Operational Lease scheme would fall under Scheme A of this policy. k) Any current or future tax implications (including perquisites) of being part of this policy will be to the concerned Officer s account. l) Queries on this policy can be raised on HR Policy Helpdesk at policy.helpdesk@tatapower.com 4.2 Guidelines Specific to Components of Car Related Benefits a) The component on Ex-showroom price is for the purpose of calculation of permissible limits of registration, road tax, insurance, etc. to be borne by the company. Any amount in excess to the equivalent road tax of the stated eligibility would need to be borne by the Officer concerned. Such excess can either be paid by the Officer upfront or can be merged in the lease rental.

6 b) In case of Officers in WL ME, cost towards comprehensive insurance, road tax, registration charges, etc. of the car would be borne by them. For Officers in WL MD and above, these charges would be borne by the company. c) The component on monetized value of car is for the purpose of calculation of cashing out of car related benefits. It is applicable in case an eligible Officer does not opt for a company allocated car or opts for a car whose lease rental is less than the monetized value component. d) The component on monetized value of car is only applicable for Officers in WL MD and above. e) All eligible Officers, who are currently availing the car scheme with a lease rental lower than the monetized value of car (entitlement as per grade, 3.1(a)) or using personal car, the difference between the monetized value and the lease rental (zero in case of use of personal car) will be cashed out. Also the difference towards driver salary, maintenance and fuel will be accordingly cashed out. f) Any cash out would be subject to taxation as per the prevalent Income Tax laws. g) In case of maintenance and fuel reimbursement, eligible Officers will be reimbursed expenses, not exceeding the entitlement as per 3.1(a), on a monthly basis upon submission of bills. In case the Officer is unable to avail full reimbursement (including the case of Personal Car), the balance entitlement will be paid at the end of the financial year after deduction of applicable taxes. The same shall apply for Driver Reimbursement, if applicable. h) Officers in WL MD & ME availing car related benefits will require to allocate amount from their Flexi allowance towards fuel / maintenance and driver salary (if applicable) within the eligibility limits and avail of applicable tax benefit on submission of bills. However, those under the Scheme A will have their Flexi reduced by the eligible maintenance component in line with 3.1(a) 4.3 Guidelines Specific to Transfer & Separation a) On transfer (within Tata Power Group, where this policy is applicable) of an Officer (having a company allocated car), he / she will have to continue with the same car till the completion of the lease period. Local taxes, if any, will be reimbursed at actuals.

7 b) If the officer availing car related benefits, separates (including transfer outside Tata Power Group of Companies) before the end of the lease tenure, he / she will have to buy the car at the foreclosure value. This foreclosure value would be determined basis the terms of agreement with the leasing partner. The same shall be payable by the Officer upfront or will be recovered from the full and final settlement of the Officer concerned. 4.4 Guidelines Specific to Scheme A a) Under this scheme the maintenance of the vehicle would be carried out by the leasing partner. b) The maintenance component would be payable as a part of the lease rental. c) Under this scheme the allocated car would be for a period of 5 years and 50,000 kms usage. (Further details can be sought from Head ES&A). d) The buyback price of car under this scheme is 21% of the ex-showroom price, taxes additional. 4.5 Guidelines Specific to Scheme B a) Under this scheme the maintenance of the vehicle would need to be taken care by the Officer themselves. b) Lease rental would not include the maintenance component. Officers would be required to follow the procedure as detailed in 3.2(c) for maintenance reimbursement. c) In case the vehicle is grounded for repairs, no spare car would be provided. d) The buyback price of car under this scheme is 10% of the ex-showroom price, taxes additional. 5 EXCEPTION 5.1 Any exception to this policy shall require the approval of Managing Director.

8 ANNEXURE I Tata Power Group of Companies covered by Policy on Car Related Benefits The additional Tata Power Group of Companies covered under the Policy on Car Related Benefits are as follows:- S.No Group Company Name 1 Coastal Gujarat Power Limited (CGPL) 2 Maithon Power Limited (MPL) 3 Industrial Energy Limited (IEL) 4 Tata Power Renewable Energy Limited (TPREL) 5 Tata Power Jamshedpur Distribution Limited (TPJDL)

9 ANNEXURE II C-1: Form for Opting to use Personal Car I Mr./Ms. PAN hereby declare that the car (Registration No.) is in my name & I am using my car partly for personal use & for official purpose. The copy of Registration No. is enclosed here with. Above stated matter is true to the best of my knowledge & belief. For any incorrectness/ inaccuracy in the declaration above, I will be solely responsible for any consequences.. Signature: Name: Employee No.: Department: Date:

10 ANNEXURE III C2: Application for Choice of Lease Car (To Be Forwarded To Head ES&A for Provision of Car) Date: / / Name: Grade: Employee No: Department / Location: Choice of Lease Car (Please Tick): Scheme A Scheme B Choice of Car: Choice Of Model: Choice of Colour: Any Other Remarks: In case of lease rental beyond my eligibility limit, I am willing to bear the additional amount and the same would deductible from my monthly remuneration. I have read and understood the terms and conditions of the Policy on Car Related Benefits completely and hereby agree to abide by them. Signature of Applicant Verified by the Local ES&A Representative