While looking for a vehicle of his decision to profit the advantage of the LTC Cash Voucher Scheme, Koushal Dey (name changed), a Central Government representative, has identified that SUV value is near about forty lakhs. The SUV means Sports Utility Value.
As the cost of the vehicle is significantly more than the measure of money instead of leave travel concession (LTC) that he will get, Koushal should take a car credit to purchase the vehicle, if he gets the sum under the LTC Cash Voucher Scheme ahead of time.
On the off chance that a representative, after taking LTC advance, spends just the development sum and makes a case, it would be treated as under-use. In such a case, after estimation, the equilibrium sum, if any might be recuperated from the representative.
It might be noticed that to profit the full advantage under the LTC Cash Voucher Scheme, which is identical to considered toll – in light of LTC piece and number of relatives – and leaves encashment – relying upon pay scale – a representative should burn through multiple times the esteemed passage and the measure of leave encashment.
As the cost of the vehicle is substantially more than the qualified sum, the whole qualified sum that Kaoushal is entitled to will be used.
Yet, does the plan permit a representative to purchase a vehicle by taking the LTC advance and automobile credit?
The GST rate on engine vehicles is more than 12 percent in India, it falls well inside the classification of qualified products. In that capacity, one may profit the LTC advance office under the plan for making initial instalment for buying a vehicle,” said Dr. Suresh Surana, Founder, RSM India.
Under this scheme, up to 100 % leave encashment and 50% of the value of deemed fare is to be paid in advance to an employee opting for the same.