Motor Vehicle Fuel Tax Claim For Refund: Fill & Download for Free

Edit: Do note that my answer and figures are during the VAT regime of taxes and pre-GST.I have recently leased a car from the “Company Car Lease Program”. So I feel qualified to answer. I can’t say for Bangalore per se. But I believe that the lease plan works more or less in the same fashion all over India. Here are the things of importance to note:The employer is the primary lessee while you are the secondary lessee. The car remains in the name of the company till the lease period is over.The leasing company finances the purchase. The leasing company’s interest rate is usually more than the interest rate that you will pay to a bank/finance company had you chosen to buy the car by yourself. For example, I am paying 12% APR.All costs such as car on-road price, cost of accessories, zero-depreciation insurance is taken into the lease cost. You don’t have to do any down payment.The EMI will depend upon the finance value minus the residual value of the car. The residual value is the value of the car at the end of the lease. This can be anything from 5% (the lowest) to 20%. This is entirely at the discretion of the terms signed between the leasing company and your employer. You have no say in this. In my case, the residual value is 5%.The EMI is payable by you. But what the employer will do is reduce your gross monthly pay by the EMI amount. This effectively means that you will pay EMI from you gross salary and not the net salary. This further means that you are making an effective savings of 30.9% in case you happen to be in the highest tax bracket (most will be in this tax bracket as the lease program is offered to middle and senior employees only).This car now becomes like a company car given to the employee for official and private use (as per definition of Income Tax laws). With this you are allowed certain perks as well as charges car perquisites:You can employ a driver whose salary does not exceed more than ₹ 15,000 pm. This salary is exempt from tax. You have to submit receipts to claim this.You are allowed official car running and maintenance expenses to the order of ₹ 10,000 per month free of tax. You have to submit fuel bills and maintenance receipts to claim this. This is tax free.A car perquisite and a driver perquisite (if driver salary is claimed) is added to the gross salary of the employee as per IT rule (see: VALUATION OF PERQUISITES - MOTOR CAR | SIMPLE TAX INDIA).At the end of the lease period you are required to buy the car at the residual value. In case, you leave the services of the company or if you lose your job, then too, you are required to buy the car at the WDV of the car at that time. The leasing company collects signed cheques from you to ensure that this happens.The car is registered with the RTO at Company Registration tax rate which is twice the amount as for the individual. At the end of the lease period, the car is transferred to you and then re-registered with Individual’s tax rate. You get a refund for the excess amount paid for the unused period. That is:Assume that lifetime tax (15 years) for company is ₹ 1,80,000. The same for Individual is ₹ 90,000.Car lease period was 5 years. After 5 years, the car is transferred to individual’s name.So the excess tax paid is: ₹ (1,80,000 - 72,000 being charge for Comp rate for 5 years - 60,000 being the tax the individual owes for balance 10 years) = ₹ 48,000. This is the refund.There is a substantial savings if you go in for company car lease. One way to look at it is that the bigger /costlier car you purchase more is the savings. But also note that the interest rate is higher and you are the one paying the EMI. But all in all, it makes sense to buy the car instead of paying income tax.You are responsible for maintenance and repairs. This amount can be claimed from the car running allowance.I went with the Honda Jazz. At y grade/position/salary, I could have gone with the Mercedes A-Class also but I figured that it would be waste of money. Here are my figures (Honda Jazz V-CVT with some accessories):Base Price: ₹ 7,48,364.00VAT @ 13.5%: ₹ 1,01,029.00Ex Showroom Price: ₹ 8,67,393.00RTO Company Registration: ₹ 1,64,045.00Insurance: ₹ 25,903.00Warranty/Accessories: ₹ 22,500.00Discount: ₹ -18,000.00Total Vehicle Cost: ₹ 10,61,841.00Residual Value (5%): ₹ 51,797.00Lease period: 3 yearsBasic Lease Amount: ₹ 31,755.00 pmVAT @ 13.5%: ₹ 4,287.00 pmTotal Lease Fees: ₹ 36,042.00 pmTax Benefits and perquisites per year:Tax Benefit (30.9%): ₹ -2,20,163.74Car Perquisite: ₹ 6,674.00Driver Salary Perquisite: ₹ 3,372.00Total Tax Benefit (per year): ₹ -2,10,117.74Actual Car Value paid for:Total Lease Payment: ₹ 12,97,512.00Residual Value: ₹ 51,797.00Car value paid: ₹ 13,49,309.00Total Tax Benefit: ₹ -6,30,353.21Landed cost: ₹ 7,18,955.79This means like paying about ₹ 7, 20, 000 out of my own pocket to buy the car outright. This is less than the base value of the car.(The CLP will work more or less in a similar fashion in all other IT companies).Edit: Some of you have asked how I arrived at the tax benefit of 220k. You get tax benefit on lease amount + petrol reimbursement + drivers salary. In my case, this is ₹ 712,504 breakup as:(36042 x12) for lease fees + (120000 for petrol) + (160000 for driver's salary).30.9% of 712,504 is the tax benefit.

DEMOCRATIC ACCOMPLISHMENTS: HISTORICAL HIGHLIGHTS• The Democratic Party has a long and cherished history of trying to do the most good for the greatest number of people.• Social Security• Medicare, Medicaid, Healthcare Reform, Food Safety• New Deal, Great Society, Peace Corp, Vista, Job Corp• Civil Rights, Women’s Right to Vote, Equal Rights, The Voting Rights Act, Equal Pay Act, Motor Voter• Consumer Protection, FDIC, Banking and Wall Street Regulations, SEC, Federal Reserve System, Anti-trust Legislation• Funding for Science, Medical and Engineering Research, Space Exploration, NSF, NIH• Support for Public Education, Head Start, School Lunch and Breakfast Programs• NLRB, 8 hr. Work Day/40 hr. Work Week, Overtime, Unemployment• Protection for the Environment, Increased Numbers and Support of National Parks and Wilderness Areas, Endangered Species Act, FEMA• Veterans’ Benefits, GI Bill• UN, NATO, Marshall Plan• Vehicles Safety Requirements, Reduced Emissions, and Fuel Economy Standards (CAFE)• TVA, Federal Loan Program, PBS, NPR, the Internet• Economic Growth (Democratic Presidents: Roosevelt through Obama)42+ Democratic Accomplishments You May Not Know aboutThis is not your father’s Republican Party. We’ve heard the phrase from a variety of people in recent years, yet it has never rung more true. In fact, my father and stepmother, both lifelong Republicans have expressed feelings of discontent and disconnect from the modern Republican Party, largely due to the string of radical Sarah Palin-backed Tea Party candidates.While, historically speaking, the kind of mood suggested by recent polls derive from a bad economy, this election has no shortage of frights. Between O’Donnell in Delaware, Sharron Angle in Nevada, and Carl Paladino in New York, among others, Republicans and Democrats alike have something to worry about, and vote against. All of the labor completed by the 111th Congress is under siege, and their legislative accomplishments, many of which benefit the average family, could be overturned or underfunded.Our current economic situation, which was created over the course of about a decade of Republican rule, cannot be fixed in 21 months. Although we have not seen economic instant gratification, we have seen consistent improvement.From tax cuts to health care reform, Republicans have spread massive amounts of misinformation using Fox, and corporate-funded campaign ads. Additionally, not enough people know that Democrats have reduced the deficit and federal spending, or that 25 tax cuts were passed just last year.Below are a few of the accomplishments Obama and the 111th Congress have made:25 Tax Cuts Passed By Obama & Democrats[3]Individuals“Making Work Pay” tax creditEarned Income Tax Credit increasedIncreased Eligibility for Refundable Portion of Child Credit“American Opportunity” Education Tax CreditFirst-time Home Buyer CreditTemp. Suspension of Taxation of Unemployment BenefitsTax Credits for Energy-Efficient Improvements to Existing HomesSales Tax Deduction for Vehicle PurchasesPremium Credits for COBRA Continuation Coverage for Unemployed WorkersEconomic Recovery Credits to Recipients of Social Security, SSI, RR Retirement, and Veterans Disability Compensation BenefitsComputers as Qualified Education Expenses in 529 Education PlansPlug-in Electric Drive Vehicle CreditTax Parity for Transit BenefitsHealth Coverage Tax Credit ExpansionSmall BusinessExtension of Enhanced Small Business Expensing5-Year Carryback of Net Operating Losses for Small BusinessesExtension of Bonus DepreciationExclusion of 75% of Small Business Capital Gains from TaxesTemporary Small Business Estimated Tax Payment ReliefTemporary Reduction of S Corporation Built-In Gains Holding Period from 10 Years to 7 YearsOther BusinessAdvanced Energy Investment CreditTax Credits for Alternative Refueling PropertyWork Opportunity Tax Credits for Hiring Unemployed Veterans and Disconnected YouthDelayed Recognition of Certain Cancellation of Debt IncomeElection to Accelerate Recognition of Historic AMT/R&D CreditsFun Fact: 1/3 of the $862 billion stimulus was for tax cuts, something Republicans claim to support … although they still stand against stimulus. I suppose it depends on who gets the tax cuts.Women’s RightsLilly Ledbetter Fair Pay ActProtection against pay discriminationRestores interpretation of Title VII of Civil Rights Act that protected women and other workersFinancial RightsCredit CARD ActPrevents retroactive rate increasesRequires companies to provide 45 days notice before changing rates and other contract provisionsAdditional restrictions placed on feesPrevents companies from taking advantage of studentsEnds unfair double-cycle billing practicesFinancial reform billEstablishes Consumer Financial Protection Bureau which seeks solely to ensure financial institutions are being fair to consumers, and improvement in the simplicity in contractsPrevents taxpayer bail out of financial institutionsAllows the GAO to audit the Federal ReserveVarious mortgage and derivatives reform, etc.EducationStudent loans[1]Ends “socialistic” federal subsidies to banks and other financial institutions (Interestingly, Republicans are okay with the kind of socialism that redirects taxpayer money to banks and other financial institutions.)Eliminates unnecessary “middle-man” in student loan process, which placed financial burden on taxpayers while banks took in profitsAnnual student loan payment capped at 10% of incomeSaves an estimated $61 billion over 10 yearsHealth CareChildren’s health insurance bill[2]CBO said bill will allow states to cover more than four million uninsured children by 2013, in addition to seven million already coveredRequires states to provide dental and mental illness coverage to childrenTobacco regulationProvides graphic warnings on tobacco use risksRestricts advertising to prevent marketing to minorsHealth care reformInsurers cannot cancel coverage when a person gets sickRequires health insurance corporations to cover preexisting conditionsEliminates lifetime limitsAllows insurance purchase across state linesAllows young adults to stay on parents’ health insurance policy until 26Crime & Civil RightsHate crime legislation[4]Provides protection for gay, lesbian, bisexual and transgender peopleTribal Law and Order ActProvide additional means to reduce high rates of violent crime, including rape & sexual assualt within Native American reservationsView the rescuetruth.com post on the Tribal Law and Order ActOtherThe Edward M. Kennedy Serve America ActExpands service and voluteer opportunitesBenefits education, health care, energy, etc.StimulusCash for Clunkers successfully contributed to 680,000+ vehicle sales in summer 2009Largest clean energy investment ever madeReduced deficit by $122 billion[5]Reduced federal spending by 2%[5]What didn’t get passed because of Republican obstructionism?Health Care for 9/11 Emergency RespondersDISCLOSE Act (transparency in elections, specifically campaign financing)Don’t Ask Don’t Tell repealRemoval of $75 million cap on oil spill payoutsElimination of tax incentives for companies shipping American jobs overseas, and creation of tax incentives to businesses bringing jobs homeSources

Introduction:There are different taxes truck operators are obliged to pay and the prominent among them is the HVUT Form 2290. A federal excise tax which is paid annually on motor vehicles with a gross weight of 55,000 pounds and above is called as HVUT. Paid by inter-state as well as the intra-state registered vehicles, this HVUT Form 2290 was started by the The American Association of State Highways Official as the heavy trucks are believed to cause most of the damage. It was also found that the trucks causes around 160,000 times more damage on roads compared with the cars. HVUT is a prime form of transportation funding in the US based countries calculated in accordance with the vehicle weight. The IRS is said to be more aggressively enforcing 2290 Tax Form which is believed to have had its impact on the vehicles owned by Canadian and Mexican trucking companies which cross the U.S. border and use the federal highways. Non-compliant drivers will be turned away at the border by the Customs officials during the time of checking.With "Form 8849" , truck owners can claim refunds of excise tax that was reported on Forms (720, 730 or 2290) including the repealed luxury taxes. This is also used to claim refunds of excise tax imposed on fuels, chemicals and other articles that are used for nontaxable purposes or for reduced rate tax in the later stage.Things to Remember:You must file the IRS Form 2290 HVUT if you have vehicles with a gross weight of 55,000 pounds or more that have the capacity to travel 5,000 miles or more annually on public highways in the United StatesIf you are the owner of 25 or more vehicles that are 55,000 pounds or more then you should file electronicallyDuring the time of first use in the US, it should be paid by the person who the vehicle is registered under State, Canadian, or Mexican lawAn EIN (Employer Identification Number) is mandatory to file Form 2290. You cannot make use of your Canadian Social Insurance Number or the Social Security Number (SSN) of the USMode of Filing HVUT:Form 2290- Heavy Vehicle Use Tax (HVUT) Returns, can be done in two ways. The taxpayer can choose the one which is really convenient for them from the below options:Paper filing of Form 2290- Heavy Vehicle Use Tax (HVUT) ReturnsE-filing of Form 2290- Heavy Vehicle Use Tax (HVUT) ReturnsPaper Filing of HVUT Returns Form 2290:It is a time-consuming processProne to errorsDelay in getting the IRS Stamped ScheduleLot of paper work is involvedNeed to have a good knowledge in filling the detailsE-Filing of HVUT Returns Form 2290:E-filing is much easier and also error freeCan save a lot of timeGet the Stamped Schedule 1 instantlyCan stay away from unwanted penaltiesWant to E-File HVUT Returns Form 2290? You can easily e-file 2290 your Form 2290 with ExpressTruckTax, the authorized IRS E-File provider.