Policy on Car & Related Benefits

Transcription

1 Policy on Car & Related Benefits Preamble In-location executive travel & mobility is an integral part of work-life for officers. Organizational growth also entails geographical expansion leading to multi-locational work-force including within the same city/town. Such growth & spread requires officers to maintain and enhance professional connect and relationships as part of collaborative endeavours. Apart from home-office-home mobility there are various meetings with colleagues, customers, clients & stakeholders which need to be attended to. Organization enables officers to address these needs by way of providing for appropriate means of travel. Provision of car & related benefits for officers is aimed to address in-location travel needs of officers with safety & comfort as also to help efficient use of executive time. It is explicitly clarified that company car is to be used by officers in total adherence to applicable provisions related to safety & legal requirements and they will own personal responsibility for such adherence (or otherwise). Growing environmental concerns within society places responsibility on the organization & its people for responsible & efficient means of travel to minimize undesirable emissions. While individual car is a necessity of modern life, officers are encouraged to use a mix of other means as well (including carpooling) to the extent feasible. Scope This policy details the eligibility, procedure and guidelines relating to car & related benefits provided by Tata Power. It is applicable to all officers in the Management stream and on the permanent rolls of Tata Power and select group companies viz. CGPL, MPL, IEL, TPTCL, TPREL, TPSSL, CTTL, PTL and any other company which may be incorporated in future with applicability of Tata Power HR policies - hereinafter referred to as 'Company' or 'Organization' in the policy. car Effect & Exceptions This policy is effective from April 1, 2017 and supersedes all prior policies and communication in this matter except the 'System Communication dated January 21, 2015' from CHRO. Exception (if not detailed otherwise) to this policy requires the approval of CEO&MD. Version 1.0 Date of Issue: January 2017 Released by: Chief - HR

2 1. Company Allotted Car Scheme: Officers can avail a car under this scheme (company allotted car) through leasing partners registered with the company from time to time. Officers can be allocated a company allotted car either of the following two schemes: Table 1 Type Details 1. Along with cost of the car, maintenance is responsibility of the leasing partner. Cost of maintenance would be payable as part of the monthly lease rental. 2. Lease period can be months (full year block) on the option of officer 3. An officer can decide the cumulative run during lease period depending on his/her Scheme A requirement, which will have an impact on cost of monthly lease rental. 4. Current buyback price of car varies between 21% - 24% of the base price of the car (residual value) & taxes, depending on the state where the car is registered. This range may undergo change based on macro-economic indicators. Scheme B 1. Primarily a financing scheme for cost of car. Officer is responsible for the maintenance of the car during lease period. 2. Lease period can be months (full year block) on the option of officer 3. Buyback price of car under this scheme is 10% of the on road price (capitalization value). Residual Value may undergo change based on macro-economic indicators. Under both schemes, responsibility of finance servicing & closure of the transaction is with the officer. During (domestic/overseas) transfer/relocation, separation due to any reason, concerned officer has the responsibility to settle the outstanding dues from amongst available options (in case (s)he decides to discontinue the lease) and the organization won't take over the car or responsibility of outstanding in any manner. 2. Eligibility: Grade-wise eligibility of officers for car related benefits is as follows: Table 2 Work Indicative Monetized Reimbursement towards Level Value of Car[MVC] (` pm) Maintenance (` pm) Fuel (` pm) Driver Salary (` pm) MA 33,360 5,000 19,000 12,000 MB 22,420 4,000 16,000 11,000 MC 18,000 3,500 14,500 10,000 MD 13,500 3,000* 9,500* 8,000* ME NA 2,500* 8,000* 8,000* *Car related benefits would be suitably adjusted in the CTC of concerned officers availing this facility. NA- Not Applicable 'Monetized value of the car' in Table 2 for different work levels are indicative and part of CTC. Officers can opt for a car under lease arrangement below or above the numbers as per individual need and preference. In case, cost of lease per month is more than monetized value of the car, amount equivalent to the difference will be reduced from flexi allowance. Further, following additional amount may be used by concerned officers from their flexi allowance for Running & Maintenance of the car based on actual production of receipts: Table 3 Work Additional Cost of Car Reimbursement towards Level (` pm) Maintenance (` pm) Fuel (` pm) Driver Salary (` pm) MA MB MC Open MD ME Car related benefits would be suitably adjusted in the CTC of concerned officers availing additional expenses. MVC may be availed subject to Maximum Total Cost on account of Car & related benefits remaining within 50% of Average net take home of previous 4 months (excluding Performance Pay) sustainable way 2

3 3. Company Allocated Car 3.1 Officers who opt to avail company allotted car need to fill form in Annexure I and submit to Head- ES&A of concerned SBUs who in consultation with Corporate ES&A will obtain quotes from the leasing partner(s) under the preferred scheme. The quote(s) received from the leasing partner(s) would be sent to the concerned officer for confirmation before placement of order. 3.2 The ES&A Corporate team will be responsible to inform the Shared Services (Payroll) team the monthly lease rental of the car and ensure that correct financial impact is effected in the salary of the officer. The concerned officer also needs to verify correctness of the same during initial period. Discrepancies (if any) need to be brought to knowledge of ES&A & Shared Services teams for rectification. 3.3 An officer can opt for a car with associated cost higher or lower than his/her eligibility as shown in Table 2 but within the limits indicated in Table 3. The lease rentals would be determined accordingly. a) In case an officer in work level MD & above opts for a car whose lease rental is less than the monetized value component given in Table 2, difference between the monetized value and lease rental is paid out in the officer's monthly salary. b) In case an officer in work level MD & above opts for a car with lease rental higher than the combined monetized value indicated in Table 2 & Table 3, the difference between the combined monetized value and lease rental will be recovered from the officer's monthly salary and flexi allowance will be adjusted accordingly. 3.4 The eligibility indicated as 'monetized value of the car' in Table 2 is for the purpose of calculation of permissible limits of registration, road tax & insurance to be borne by the organization. Any amount in excess of the indicated eligibility would need to be borne by the officer concerned. Such excess can either be paid by the officer initially or can be combined in the lease rental. 3.5 For officers in work level ME, cost towards comprehensive insurance, road tax and registration charges of the car would be borne by the concerned officer. Upon completion of the lease period, it is mandatory for the officer to buy back the car in his/her name. 4. Miscellaneous Provisions 4.1 Officers who do not opt for a company allotted car are eligible to claim expenses (for intra-city travel undertaken in relation to their work) as admissible to officers under the provisions of Domestic Travel Policy. 4.2 Officers who do not have a company allotted car and have a personal car can avail reimbursement of maintenance, fuel and driver expenses and will be reimbursed as per prevailing Income Tax rules/ limits. 4.3 Tax exemptions as applicable from time to time under relevant provisions of Income Tax Act & other laws will be extended to officers who opt for Company Allotted Car scheme. 4.4 Officers not availing company car scheme may opt for Conveyance allowance (as part of flexible pay) for tax benefits. This and the above 3 provisions are mutually exclusive and can't be availed in conjunction. 5. Cost of Fuel, Maintenance and Driver 5.1 To avail reimbursement of cost incurred towards fuel, maintenance & driver, officers need to submit receipts of actual expenses on the online portal. Cost of driver's wages needs to be claimed by way of uploading Personal Driver Undertaking (Annexure II) in the system. 5.2 Wherever car related benefits are proposed to be drawn from flexi allowances, concerned officer needs to allocate necessary amount in his/her Flexi allowance towards lease, maintenance, fuel and driver salary within the eligibility limits and avail tax benefit on submission of receipts against cost of Fuel, Maintenance & Driver. 5.3 Officers opting for Scheme A cannot claim reimbursement towards maintenance expenses. Officers opting for Scheme B can avail reimbursement of maintenance expenses within the eligibility limits with actual expense receipt. 5.4 Officers in work levels MC & above (on their option) may avail Petro Card facility for fuel. Based on actual usage and inputs from ES&A, necessary adjustment in remuneration will be made by SSC (Payroll) team. sustainable way 3

4 6. Guidelines 6.1 Once a car is allotted, it will remain allotted to the concerned officer for the duration of the lease period irrespective of change of grade on promotion. However, on promotion the officer will be entitled to claim expenses against other related benefits as applicable to the new grade subject to actuals. 6.2 If the company allocated car is out of service for repairs or maintenance, no replacement vehicle will be provided by the company. Officers in WL MA & above who avail Scheme A, can opt for a replacement vehicle which will be provided by the leasing company. Charges for this feature, (as applicable) will be part of the monthly lease rental. 6.3 Officers in work level MC & above who do not prefer to claim expenses towards fuel, maintenance and driver will receive the eligible amount in their salary after deduction of applicable taxes. 6.4 In case an officer has availed Car Loan under in Loan Policy, (s)he is required to settle the same before availing a company allocated car under this policy. 6.5 In case of separation (owing to resignation/termination) or transfer to a group company (domestic or overseas) outside the scope of this policy (before the end of the lease tenure), the officer who has a company allocated car needs to buy back the car (in the officer's name) at the foreclosure value as arrived at by the leasing partner based on the terms of agreement between the company and leasing partner. 6.6 In case of transfer to another location or company where this policy is applicable, the officer may continue with the same car. The cost of road tax, local taxes and shifting of car will be borne by company as per relevant provisions from time to time under Policy on Joining & Transfer benefits. 6.7 In case an officer is superannuating the company will enter into a leasing period option upto the month of superannuation. In such cases, subject to willingness of leasing partner(s) the tenure of lease may be shorter than as prescribed. However, the officer must settle the account with leasing partner immediately on superannuation. 6.8 Officers presently in a car scheme other than the ones mentioned in this policy, shall continue as per the previous terms till such time their car is due for replacement. On completion, they would be eligible to join either of the schemes as mentioned in this policy. Officers availing car under the Operational Lease scheme correspond to Scheme A of this policy. 6.9 Any tax implications arising due to provisions of this policy will be borne by the officer. 7. Roles & Responsibilities Roles Officers ES&A Team Responsibilities a. Fill the relevant form and submit to ES&A for availing company leased car b. Submit valid bills, receipts etc. for maintenance, fuel and driver reimbursement a. Seek quotes from the registered leasing partners b. Place the order for the car for the officer c. Inform the Shared Services Payroll Team the lease rental amount of concerned officers which needs to adjusted every month d. Maintain a central data base of all officers who have availed company leased car and those who have personal car Shared Services Payroll Chief - HR a. Make payroll adjustments based on inputs from ES&A b. Reimburse maintenance, fuel and driver expenses Overall process and policy ownership sustainable way 4

5 ANNEXURE I 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 sustainable way 5

6 ANNEXURE II 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: sustainable way 6