Car maintenance reimbursement

The company will reimburse expenses for maintenance of personal cars, as a perquisite to some officers. When this is offered, the terms are as given below.

Amount per year

Each recipient of this perk will be offered an amount per financial year. This is the limit of what he can claim reimbursement for, in one FY.

The amount quoted to the recipient will be the amount reimbursed. If this perk attracts any additional income tax, then the company will adjust the employee's CTC to absorb the additional income tax to the company's account.

All claims made during the financial year will go towards the limit sanctioned. The date on which the claim is made will be the date which will decide which FY the claim applies to. The date on which the expense is incurred will not decide this.

Terms of reimbursement

The following terms apply:

1. Claims must always be accompanied by an invoice for parts and labour from a tax-paying service centre or dealer, and the invoice must include relevant taxes. The invoice must mention the car registration number.
2. The date on which the officer incurred the expense may be up to 12 months prior to the date on which the officer is filing his claim for reimbursement.
3. If an invoice has a value larger than the available reimbursement budget for the officer, part reimbursement may be claimed for the current FY and the balance may be claimed for the next FY.
4. The Accounts Dept will make a photocopy of the the invoice and return the original to the officer for his personal records.

What is covered for reimbursement

The following will be covered:

1. All repairs: parts plus labour
2. Routine servicing: consumables, parts and labour
3. Replacement of parts due to normal use, wear and tear, e.g. tyres
4. Re-painting

Fuel costs are not covered for reimbursement.

Pro-rata reduction in limit

The reimbursement limit is for a 12-month period, aligned with financial year boundaries.

If an officer is in the employ of Merce for a part of a financial year, then his limit will be reduced pro rata. If the company provides a car for the officer's individual use at some point during the financial year, then the reimbursement limit will be only for the period during which the company did not provide any car to the officer, therefore it will be reduced pro rata accordingly.