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Company Car Policy - New (Effective March 15, 2010) Version 2.5
July 1, 2014 Wipro – For Internal circulation only Group HR Function
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Contents
Objective ............................................................................................................................................ 3
Eligibility ............................................................................................................................................. 3
Policy .................................................................................................................................................. 3
Applicable Limits .......................................................................................................................................... 3
Type of Car ................................................................................................................................................... 3
Lease Period of the Car ................................................................................................................................ 4
Vendor Details ............................................................................................................................................. 4
Interest Rates .............................................................................................................................................. 5
Adjustment to WBP ..................................................................................................................................... 6
Car Transfer ....................................................................................................................................... 6
Lease closure at the end of the lease period .............................................................................................. 7
Foreclosure .................................................................................................................................................. 7
Usage of the car and clauses related to the damage of the Car .......................................................... 8
Taxation ........................................................................................................................................... 10
Car Running and Maintenance expenses (CRM) ............................................................................. 11
Taxation on CRM ....................................................................................................................................... 11
Conveyance claim on company provided car: ........................................................................................... 11
PROCESS ........................................................................................................................................... 12
Request for Company provided car (New Car) .......................................................................................... 12
*Request for Company provided car (Used Car) ....................................................................................... 12
SLA matrix .................................................................................................................................................. 13
Contacts ............................................................................................................................................ 13
Annexure .......................................................................................................................................... 14
Process flow ............................................................................................................................................... 14
Process Note .............................................................................................................................................. 14
Second hand/ Transferred Car Lease ............................................................................................................. 14
Car transfer to a different location ................................................................................................................ 15
RC Title transfer in case of foreclosure .......................................................................................................... 16
Amendment History ......................................................................................................................... 17
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IMPORTANT
*Band wise Limit will be removed Effective February 1, 2012.
Effective March 15, 2010 all new Cars will be purchased under the Company Car Scheme, hereafter referred to as
“Company Car Policy New (effective 15th March 2010)”. However the existing cars purchased will continue to follow
previous Company Car Policy (Please refer to the policy document in People Practices - “Company Car Policy Old
(before 15th March 2010)”).
The details of the new car policy are mentioned below.
Objective
The objective of company provided car is to provide the convenience of commutation for official & personal purpose.
The cars will be on lease with a third party Service Provider.
Eligibility
All India based employees in career groups C1, C2, D1, D2 & E.
Policy
Applicable Limits
The EMI amount should not exceed 75% of your monthly WBP eligibility.
No other deviation in respect of Car Limits will be allowed beyond the above mentioned.
Insurance, road tax, VAT and Service Tax will be added to the overall cost to compute the final EMI.
Your maximum limit will be restricted to the EMI not exceeding 75% of your overall WBP eligibility.
Type of Car
The company will provide a car of your choice through the chosen external leasing company (Referred to as ‘Vendor’
henceforth), subject to the limits and other conditions prescribed under this policy. You can opt for any model of car
and the use period, subject to the condition that the EMI amount does not exceed 75% of your monthly WBP.
You may choose to buy from the following options:
New Car:
You may choose to buy a new car based on the WBP eligibility.
Second Hand Cars:
Subject to your WBP eligibility,
You may choose to use any second hand car / model. However the vehicle should not be older than 3 years and
should not have been driven for more than 30,000 kms.
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The Interest rate applicable on the second hand car will be higher than new car. The details of the same will be
updated in the Vendor details section below.
The documentation in this case will be completed in not less than 15 days from the date of request from you.
The valuation will be done by vendor. Please contact the vendor for details on the process of valuation. The
applicable charges will be borne by you.
All applicable taxes including VAT, Sales tax etc on the car will have to be borne by you and can be included in the
funding amount.
Please contact the vendor for details on valuation and the process thereafter.
Transferred Car:
Subject to your WBP eligibility,
The Company can take over car which is currently in your name or your previous employer’s name subject to the
condition that the car should not be older than 3 years and should have a mileage less than 30,000 kms.
The Interest rate applicable on the Transferred Car will be higher than new car. The details of the same will be
updated in the Vendor details section below.
The valuation will be done by vendor. Please contact the vendor for details on the process of valuation. The
applicable charges will be borne by you.
All applicable taxes including VAT, Sales tax etc on the transfer will have to be borne by you and can be included in
the funding amount.
Please contact the vendor for details on valuation and the process thereof.
Lease Period of the Car
You may choose the period of usage as 2,3, 4 or 5 years. You do not have the option to opt for a secondary lease
beyond the lease period. Please note : tenure option of 2 years is not available with L&T Finance.
At the end of the lease period, you will be required to buyback the Car at predetermined residual value. Refer to
Transfer of car section for more details.
Please note that the lease period for a second hand car/ transferred car cannot be more than 6 years from the
date of purchase of the car.
You will not be allowed to change the usage period once opted for during the lease.
Vendor Details
You will have an option to lease car from Kotak Mahindra Prime Ltd or Magma Fincorp or L&T Finance. You will
be required to sign an agreement (Vehicle Purchase Agreement or VPA) with the vendor at the start of the Lease
for the buyback of the Car at the end of the lease.
Please note if your preferred Vendor is L&T & if you are based in Bangalore, you are required to print the VPA
format provided and personally get the franking done at the Sub Registrar Office (facility available in
Koramangala BDA complex between 10am to 3pm). At other locations, Vendor will provide the stamp paper. For
any clarifications, you can reach out to your location Admin team.
Once the Vehicle Request Letter (VRL) is raised, you cannot cancel/ recall the request. If such an exceptional
situation arises, you are required to bear all such costs as provided by the Vendor/ Dealer as cancellation
charges.
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Upon selection & confirmation on the car, EMI deduction will be initiated through your payroll. Please check the
process below for more details.
The value proposition of each vendor is summarized in the below table.
Kotak Magma L&T Finance Different Interest rates for
different tenure, competitive rates for specifically 5 year
tenure
Different Interest rates for different tenure
Single competitive rate across 3,4,5 years
Support on rate negotiation process with the dealer if it is a preferred dealer of the Vendor.
Foreclosure charges applicable incase of early closure of the
lease.
Foreclosure charges applicable incase of early closure of the lease. However these are waived off if the employee is
closing the Car Lease due to Onsite Deputation
Foreclosure charges applicable incase of early closure of the
lease.
Other value added services available. Converting to loan
possible in case of foreclosure. Other value added services available
Interest Rates
In a leasing arrangement, rental per month for every lakh funded by the Vendor is an appropriate measure of evaluation of leasing schemes offered by different Vendors.
Please refer to the table below that provides an indicative summary of monthly rentals applicable for every lakh
funded by the leasing company and will give you a linearized view across vendors. The interest rates mentioned below are PTPM (Per Thousand Per Month) interest rates to provide a uniform view of the vendors.
The interest rates are applicable for a quarter and are subject to revision. The revised interest rate applicable for
the next quarter will be informed in the beginning of the same quarter and all cars booked in that quarter will carry the same interest rate. The same will be updated here periodically/in case of change.
The interest rate (applicable at that time) will be fixed through the tenure of the lease once you opt for the
company car arrangement. It is strongly advised that you reach out to all the vendors to get a comparative view of the total outflow
during the lease. Please make note of the foreclosure charges in an unforeseen event of closure of lease.
*Interest rate (based on PTPM) Kotak Magma L&T Finance
New car
2yrs – 15.71% 3yrs – 13.59% 4yrs – 13.06% 5yrs – 12.53%
2yrs – 14.00% 3yrs – 12.00% 4yrs – 12.00% 5yrs – 12.00%
3yrs – 12.00% 4yrs – 12.00% 5yrs – 12.00%
Second Hand/Transferred Car 3yrs – 16.71% 4yrs – 15.40% 5yrs – 14.51%
- 3yrs - 14.00% 4yrs – 14.00% 5yrs – 14.00%
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Monthly rentals per lakh funded, in INR (based on PTPM)
New car Second hand/ transferred car
Tenure, in years
Kotak Magma L&T Finance Kotak Magma L&T Finance VAT & Service tax
will be added at actuals.
2 3989 3893 - - - -
3 2945 2858 2871 3119 - 2970
4 2414 2356 2370 2545 - 2470
5 2070 2041 2050 2182 - 2155
*Interest rates shared by Vendor is dependent on vendor-specific operating model and may not serve as an accurate measure of comparison. They have been replaced with PTPM rates and rentals, as above tables, to provide a linearized view across Vendors and ensure better comparison.
Adjustment to WBP
Your annual car EMI amount finalized will be reduced from your overall WBP eligibility and will reflect under
a separate salary head called the ‘company car’. A fresh CTC letter will be issued to you when you enter into
a car lease arrangement.
This amount is called the EMI i.e. Equated Monthly Installment.
Balance available after company car can be utilized for other claims under WBP. You are required to replan
your WBP once you opt for Company Car such that the declarations in various columns do not exceed the
revised WBP eligibility.
EMI will vary according to the car lease period chosen by you.
The EMI updated to your CTC will not change for the lease tenure opted. The EMI debited to the CTC is for
the complete month, and not prorated if the lease is taken in the middle of the month. The deduction of EMI
in CTC will be reconciled with the Vendor payout at the time of car lease closure or transfer and the
difference if any will be adjusted to employee’s WBP accordingly.
The annual Insurance treatment will differ based on the terms agreed with the Vendor, the same will be
notified to you at the time of entering into the car lease arrangement.
Car Transfer
At the end of the Usage period you will have to pay percentage of the Car value at end of lease tenure. This
amount is called the Residual Value (RV).
Lease Tenure Residual Value (RV)
2 yrs 25%
3 yrs 20%
4 yrs 17%
5 yrs 15%
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Example:
For a car of value Rs.750,000, if the tenure selected is 5 yrs, after the use period is over you can pay Rs. 112,500 towards the buyback value and get the car transferred in your name. Perquisite tax and VAT incidence at the time of transfer of car will be applicable and will have to be borne by you.
You will be required to sign a Vehicle Purchase Agreement at the time of initiation of the Car Lease. This will be done on Rs 200/- stamp paper (this cost will have to be borne by the employee at the time of initiation.
Lease closure at the end of the lease period
As per the arrangement between the Vendor and you at the time of initiation of the car lease, you will have to
buyback the car on completion of the lease period. The buyback value will be 25%, 20%, 17% or 15% of the original cost based on the tenure chosen.
On payment of the relevant dues to the car lease vendor, the car ownership will be transferred to you. All
applicable taxes including charges for transfer of vehicle will have to be borne by you.
Direct Transfer of Title to third party in case of car lease closure is not permissible.
Please note: You must ensure timely closure of the car transfer to avoid any penalty charges that may be levied by the leasing company on account of delayed payment.
Penalty charges for the three leasing companies are mentioned below
Kotak Magma L&T Finance 3% per month compounded on a monthly basis on payment due
3% per month compounded on a monthly basis on payment due
1.5% per month compounded on a monthly basis on payment due
Foreclosure
You will be required to foreclose the car lease in the following scenarios:
Separation
Long term deputation on an onsite assignment (Except for the countries of Uganda, Zambia and Bhutan where complete India salary is paid out)
The Car lease is required to be terminated at anytime during the lease period due to either your separation or
long term deputation outside India. Rate of discounting based on the vendor chosen by you would be applied on the future rental payable. Discounting rate is mentioned below:
Kotak Interest rate minus 2.5%
Magma
Interest rate minus 2% (in case of separation) (In case of onsite long term assignment, only outstanding principal is required to be paid.)
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L&T Finance Interest rate minus 2%
Net Present Value (NPV) of such future rentals will be calculated at the discounting rate. Foreclosure amount
includes NPV of future rentals, buyback amount & VAT applicable on buyback amount. Alternatively, you can identify an eligible employee for using the company car as per the policy. However, the car
should not be more than 3 years old or been driven more than 30,000 kms. The car lease will be transferred to the new employee on the same terms and conditions for the balance tenure & subject to the documentation requirement by the Vendor. The interest rates will remain same as per the earlier contract.
Note: Request received on or before the 18th of the month will be processed for closure in that month end, if
received after 18th will be done in subsequent month. Guidelines on Foreclosure
You are required to get the car transferred in your name under this policy.
You are required to initiate the closure process atleast 15 days prior to your date of surrender/last working date
as applicable. The amount to be paid by you to the company/the vendor will be communicated to you by the
company/vendor on your intimation.
- If you have completed the lease period then the buyback value will be 25%, 20%, 17% or 15% of the
original cost based on the tenure chosen.
- If you have not completed the usage period the balance unadjusted amount including the buyback value
will be discounted to arrive at a NPV.
On communication of the buyback value you are required to pay the amount within 15 days there from.
On receipt of the transferee name and address from you, the vendor will hand over the transfer forms duly
signed by the authorized signatory within two days.
In case of transfer, you may choose to buy the car during the use period. The amount to be paid for getting the
car transferred to your name will be calculated in the same manner as in the case of a separating employee.
All applicable taxes and charges arising out of the event will have to be borne by you.
Upon foreclosure/closure of lease, you have an option to directly transfer the car title to a third party. This is
subject to the following conditions:
Due consideration for buyback is settled by the employee to the Vendor.
Employee is required to execute the tripartite agreement on stamp paper of Rs. 100 and submit to FMG.
Certified copy of proof of age, identity and address of the third party needs to be provided. (tripartite
agreement template is uploaded on myWipro)
Please note till such time the car title transfer does not happen to your name/ third party, any damages/
liabilities arising will need to be borne by you/ third party.
Usage of the car and clauses related to the damage of the Car
During the Company Car Lease tenure the followings are the terms and conditions that you will be bound to
oblige with regards to the usage of the car.
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At the time of initiation of the request for car lease, you will be required to agree to the terms mentioned
herewith. The details of the same areas under:
You are required to initiate the closure process atleast 15 days prior to your date of surrender/last working date
as applicable. The amount to be paid by you to the company/the vendor will be communicated to you by the
company/vendor on your intimation.
In the event of any failure or delay on your part to fulfill obligations given under this policy ;
o The Company will have a right to take possession of the Vehicle and dispose the vehicle at the market
rate and in such an eventuality the difference between the foreclosure amount and the sale price shall
be deducted from your following month Payroll OR full and final settlement with the company. In case
the amount to be recovered exceeds the dues payable to you by the company, the treatment will be
governed by the Separation policy of the company.
o The company will have a right to hold your full and final settlement till such time the vehicle dues are
settled by you.
You are required to use the Vehicle for personal and official purposes only. You will exercise all such care and
caution as a prudent person would as regards the use of the Vehicle while the same is in your possession and
used by you.
In case of any damage to the vehicle, you are required to bear the expense of such repairs and additional
accessories being installed or removed.
In the event of the Vehicle damage on account of an accident after its possession given to you by the Company
and during the term of the lease, please note that the cost of repairing of the damaged car will first be recovered
from the insurer as per the permissible limit. If in case the actual cost of repairing the damaged car is in excess of
the amount recovered from the insurer, you will be required to bear those expenses and pay the same to the
Service center.
In cases of an accident where there is damage to the car, it is your responsibility to carry out all such process
required for claiming the amount incurred for the repairs from the Insurance company.
In cases of theft of the car, you are required to file insurance claims and recover the money from the Insurer
which will be used to pay the vendor company for foreclosure of the leased car. However, if there is any shortfall
between the amount received from the insurer and the amount actually spent on the foreclosure of the lease,
then you are required to bear that difference.
It will be your responsibility to get the car serviced, at regular intervals, as per operating guidelines.
Registration Process - The vehicle will be registered in the name of Wipro Limited with the office address of
Wipro in the respective location. All documents with respect to vehicle registration will be provided by the local
administration department of Wipro. It is mandatory to register the vehicle through the dealer from whom the
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car is purchased. Employee cannot register the vehicle on his/her own. The vehicle needs to be registered in the
same location as his/ her base location in Wipro. Original registration certificate (RC) will be sent by the local RTO
to Wipro address/ dealer by speed post within 60 working days. Same will be handed over by the local admin/
dealer to the employees. You are advised to stay in touch with the stakeholder concerned.
During the lease tenure, you are required to renew the insurance only through the Vendor/ Wipro car lease
team, before its expiry.
Company does not take any responsibility for breach of traffic rules or violation of any laws committed by you or
any other person using the car. Any liability arising out of the same will be borne by you.
You are required to buyback the car and settle all the dues before the lease expiry date or latest within 30 days
from date of expiry. Any settlement done beyond lease expiry date may be subject to interest charged by the
Vendor, in which, it will have to be borne by you.
Taxation
The EMI will include all incidences of VAT/Service Tax and any other taxes and duties as applicable at the time of
entering into the lease transaction. Since these are subject to revision based on the policy announced by the
Government from time to time, the same will have to be clarified by the vendor at the time of entering into the lease
transaction.
The likely incidence will be as below
Value Added Tax (VAT) on purchase: There will be a VAT incidence at the time of purchase of the vehicle.
This may vary as per different states in India and the location of Car purchase. This however can be set
off against VAT on Lease rentals.
Value Added Tax (VAT) on Lease rentals: There will be a VAT incidence on the lease rentals which will be
charged to you along with your base rental. The EMI will contain base rentals along with VAT and Service
Tax.
Value Added Tax (VAT) on buyback
Stamp Duty: Stamp duty will be applicable at the time of entering into the lease transaction.
Perquisite Value & Tax Liability at the time of closure of lease:
o Perquisite value of the car will be determined by the IT department.
o At the time of buyback of the car, perquisite value will be calculated which is the difference
between the depreciated Book value at 20% WDV (Written Down Value) basis versus amount
paid by you to the company for getting the Car transferred to your name.
o This will be added to your income and tax will be deducted accordingly.
Car Running and Maintenance: the same has been explained in detail in next section.
Please note that all the applicable taxes will have to be borne by you.
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Car Running and Maintenance expenses (CRM)
You are eligible to claim the car running and maintenance expenses under WBP within the limits prescribed. The
running & maintenance expenses are applicable in both the cars i.e. for cars bought before 15th March 2010 & after
as well.
Please note: You are eligible to claim CRM only on a company leased car. You cannot claim CRM for a car which is
in your name.
Reimbursement from WBP will be made on submission of proof of relevant expenses.
Running & Maintenance expenses included fuel expenses commuting between office and residence travel, all
travels within & outside city limits. It also includes cost of regular maintenance, taxes, insurance,
membership fees for automobile association etc.
You are also eligible to claim actual car cleaning expenses as a reimbursement under WBP against declaration
subject to a limit of Rs. 500 per month.
You are also eligible to claim salary paid to driver engaged by you on submission of relevant proof.
The CRM limits are as below:
Career Group CRM limit p.m.
Group C1,C2 Rs. 17,000
Group D1,D2 Rs. 22,000
Group E Rs. 28,000
Taxation on CRM
You will be liable for perquisite tax on CRM claimed. The perquisite value is based on the cubic capacity and will
be calculated as below: • If CC is more than 1.6 Litres = Rs 3,300 per month (i.e. Rs. 2,400 plus Rs.900 for driver’s salary, if provided) • If CC is less than 1.6 Litres = Rs 2,700 per month (i.e. Rs. 1,800 plus Rs. 900 for driver’s salary, if provided) The perquisite value will be taxed in your hands as per the applicable tax slab rates.
Conveyance claim on company provided car:
You may use the company car for all official travel
If you are using the company car for any official travel, you are not eligible to claim any other expenses with
respect to the same travel.
If you have been provided company car, you are not eligible to seek reimbursements for any other mode of
transport for local travel unless you use public transport or a preferred vendor taxi service. The company will
regularly publish a preferred vendor taxi list. Reimbursement can be claimed through online CASH
reimbursement system on myWipro and the amount would be credited to your ERA account.
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PROCESS
Request for Company provided car (New Car)
Car Lease Request is required to be raised in myWipro > My Financials >Company Car (MOVE). The request will be sent
to multiple Vendors (based on Request created), who in turn will send across the quote & dealer details. Based on the
pricing provided, you can choose one of the Vendors and create Car Lease Request on MOVE. Vendor will make the
payment to the dealer & the car will be delivered to you.
You will be required to finalize the vehicle and the dealer and inform the same to the Vendor and to Wipro local car
lease person. The same is done through signing the “Vehicle Request Letter” and confirmation of the same by email.
Please refer Annexure > Process Flow.
Please note: You will not be allowed to change your car request/cancel the car request once the same is signed and
agreed by you. In case of any cancellation/change all applicable charges/penalties will have to be borne by you.
*Request for Company provided car (Used Car)
Car lease request is required to be raised in myWipro > My Financials > Company Car (MOVE) to proceed with the
application. Please note the following important points before applying:
The car should not be older than 3 years and should not have been driven more than 30,000 kms. The valuation
of car will be done by the vendor after submission of request.
In case the car is not registered in Bangalore, you will have to pay the entry tax, road tax and arrange for NOC
in favor of Wipro Limited, Bangalore.
Payment will be made to you:
a) as per the valuation certificate issued by valuator of leasing company (in case of Kotak)
b) as per the written down value of the car (in case of Magma)
You are required to clear the loan with the bank, and submit two original copies of Form 35 from the bank with
your signature. The original dealer invoice copy will have to be submitted.
You are required to submit the RC book to the vendor of your choice who will get the RC book transferred to
Wipro’s name. The expenses incurred on RC transfer have to be borne by the employee. The original RC book
will be sent back to you, post transfer and you will have to approach your Insurance Company for transfer of
insurance with your car for inspection if required. Incase the insurance is not transferred; accident claims will
not be entertained by the Insurance Company. This can include own damage or a third party risk. Please send
a copy of the transferred insurance to the admin department. Renewal of insurance after expiry will be done by
the Company.
Submit transfer documents (Form 29) on which signatures of the registered owner has to be obtained (pages 3
and 4 to be printed back to back and rest single side, signatures required on places marked in red arrow) &
copy of insurance policy.
* Please refer the Process Note in Annexure for more details.
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Top
SLA matrix
S No. Activity Response Time
1 Response with the quote once request is raised
1 working day (for requests in Bangalore)
2 working days (for requests in other locations)
2 Query handling Any query to be responded within 2 working days of the request.
3 Processing of the car 6 working days once quotation is finalized & documents are submitted by Wipro SPOC, Employee & Car dealer.
4 RTO documents (form 20/34 etc)
Signed & given to the vendor by Wipro SPOC on the same day as approval of VRL. Forms to be provided by vendor.
5 RC copy, tax invoice, insurance note copy
Copy of the documents to be submitted by the vendor within 45 days from the date of delivery. (RC is directly couriered by the RTO)
6 Foreclosure
Foreclosure statement to be provided within 2 working days, once request is raised. If the foreclosure request is raised after 25th of a month, statement will be provided in the next month.
NOC to be released within 10 working days subject to completion of all documentation and payment.
*The above timelines are subject to completion of documentation & availability of vehicle.
Contacts
For any further clarification or information with regards to this policy, please log a call at
https://serviceconnect.wipro.com/. Please use a keyword to search for the service while logging the Service Call Ticket.
Magma Kotak Mahindra L&T Finance
Contact person
Arun Kumar Partha Dey / Lokesh Kumar Supinder Panesar
Email id [email protected]
[email protected] [email protected]
Contact +91 9845470637, +91 9986403526 (Partha) 022 67372882
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nos. 080-40544100 +91 9986031994 (Lokesh)
2nd level escalation
G Elangoraj +91-96631-22522 [email protected]
Anand Zutshi +91 9619866869 [email protected]
Nidhi Rathi 09867511122 / [email protected]
3rd Level escalation
Sachin Chandra, +91-97179-33345 [email protected]
*Please note that the above contact details are for escalation. Please raise a request in Company Car (MOVE) for processing company provided car. Please refer the SLA matrix for the timelines involved.
Annexure
Process flow
Process Note
Second hand/ Transferred Car Lease
Employee approaches Vendor representative & gets quotation for the car identified by him. Since it is a used car, it
would fall under one of the following categories:
In case of unencumbered self owned car (car owned by the employee – without any loan hypothecation)
Funding as per the valuation of the car. Employee to give invoice in specified format to VENDOR. VENDOR will make payment to the employee and receipt shall be taken from him.
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RC shall be transferred in the name of WIPRO with VENDOR hypothecation.
In case of financed (on loan) self owned car Funding to be restricted to valuation or bank foreclosure, whichever is higher. Employee to give invoice in specified format to VENDOR. VENDOR will make payment to the employee and receipt to be taken from him. VENDOR will take foreclosure value DD from employee against payment and deposit it with previous financier. Alternatively employee can foreclosure loan prior to taking lease. RC shall be transferred in the name of WIPRO with VENDOR hypothecation.
In case of lease take-over of the vehicle Funding to be restricted to foreclosure value or valuation, whichever is higher. VENDOR will make payment to previous lease financier. Receipt from both the parties to be taken. Invoice to be taken from both the parties. RC shall be transferred in the name of WIPRO with VENDOR hypothecation.
In case of purchase of the vehicle from third party which has taken lease from another lease company
Funding to be restricted to purchase price or foreclosure whichever is lesser. VENDOR will make the payment to the previous lease financier. Valuation is to be done only to assess the condition of the car. Payment to the financier. Receipt to be taken from financier. Invoice from owner of the asset. RC shall be transferred in the name of WIPRO with VENDOR hypothecation.
In case of purchase of vehicle from third party (Dealer)
Funding to be restricted to purchase price or valuation whichever is lesser. Payment to be made to owner of the asset and receipt to be taken from him. Invoice from owner of the asset. RC shall be transferred in the name of WIPRO with VENDOR hypothecation.
In the above scenario, Employee is required to submit the documents listed below to the Local RTO, through the local Admin team. S/he is required to bear the transfer charges and any other such costs that will be payable to RTO agent. RC Transfer process takes 8-12 weeks (subject to complete documents) depending upon the RTO location. List of documents required:
1. Original RC 2. Original Insurance policy (Valid) 3. Form 34 issued from the VENDOR 4. Form 34 – need to signed by the new registered owner (Wipro) 5. Transfer Set signed by the existing registered owner - Form 29 two sets , Form 30 two sets, issue of clearance 6. certificate, Transfer of insurance 7. Form 30 Part 2- signed by the transferee (Wipro) 8. Address Proof – Passport/ Telephone bill & PAN Card 9. Emission certificate copy
Car transfer to a different location
For employees getting transferred from one location a new location (within same Company),
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Employee shall approach the existing VENDOR branch (it is advisable to approach at least 1 month in advance) & state his request to issue NOC to the RTO for transfer of vehicle registration. Employee is required to share RC and Insurance copy and location Admin will confirm the transfer.
(Also, the appropriate option on myWipro > MOVE is required to be selected) On the basis of VENDOR NOC & other required forms (Form 28), employee is required to approach local car
lease team, who will help obtain NOC from existing location RTO stating transfer of registration to another location.
On the basis of NOC issued by RTO (existing location), request for re-registration of the car with the RTO in the new location needs to be completed. This can be done along with support from local car lease team.
Employee is required to submit the following documents to the RTO in the new location for the address
change:
Form 28
VENDOR NOC
Earlier location RTO NOC
Wipro address proof of new location
Road tax amount to new location RTO
PAN Card copy to new location RTO
(Basis on the above documents new address & new vehicle no. will be updated in the RC.) Any taxes – if applicable (Road Tax, Entry tax, Octroi etc) to be borne by the employee. This can be claimed
under Transfer expenses. Unless NOC is obtained from Vendor & RTO, employee cannot run the car in the new location where s/he has
been transferred to. This is treated as a legal violation. Services of RTO agents (as per the agent fee structure) will be utilized to facilitate the same. Any related costs
are required to be borne by the employee.
RC Title transfer in case of foreclosure
Employee shall approach the existing VENDOR branch (it is advisable to approach in the beginning of the
month as the foreclosure statement has validity till 28th of the same month (for Magma) or atleast 1 month in advance (for Kotak) & state his request to foreclose lease contract. (Also, the appropriate option on myWipro > MOVE is required to be selected)
VENDOR shall issue foreclosure statement. After payment of foreclosure amount, VENDOR shall issue NOC for RC transfer & removal of hypothecation. On the basis of NOC issued by VENDOR, employee is required to approach local car lease team, who will
approach the RTO & request for title transfer of the car (NOC from WIPRO is also required to this effect). Services of RTO agents (as per the agent fee structure) will be utilized to facilitate the same. Any related costs
are required to be borne by the employee. RC transfer process take usually 4-8 weeks (subject to complete documents) depending upon the RTO location.
FAQs
Q. What if I am going on short term onsite assignment? Will I be required to foreclose the lease? A. No. Foreclosure is not required in case of short term onsite assignment. EMI deductions will continue as
before.
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Q. Am I required to foreclose the lease in case I am going on extended maternity leave or any other loss of pay leave?
A. Foreclosure is not required. The EMI amounts would get adjusted from your salary post your return to work. Q. What happens if I am going on half day half pay? A. The complete EMI will continue to be remitted to the vendor. Partial EMI will be adjusted from your CTC and
balance will be deducted from the salary paid. Tax benefit will be limited to that extent. O. What happens in case of a long term onsite deputation to the countries of Uganda, Zambia and Bhutan? A. You are not required to foreclose the car lease in case of long term deputation to Uganda, Zambia or Bhutan
because full India salary is paid out in these countries. The EMI deductions would continue from the WBP as before.
Amendment History
Amendment Date Policy Version Author Approved By: Nature of Changes
10. 01.2010 1.1 C&B Team Head – C&B Kotak car rates changed.
05.04.2011 1.2 C&B Team Head – C&B Linearized EMI applicable to the vendors added.
01.06.2011 1.3 C& B Team Head – C&B
Actual rates of vendor have been replaced with linearized interest rates. SLA matrix and process notes added for various stages of car lease. Religare rates changed. CRM limits revised.
01.07.2011 1.4 C&B Team Head – C&B Introduction of L&T
01.02.2012 1.5 C&B Team Head – C&B Band wise limit removed
01.04.2012 1.6 C&B Team Head – C&B Change in L&T Interest Rate updated
23.05.2012 1.7 C&B Team Head – C&B Change in Religare Interest Rate updated
02.08.2012 1.8 C&B Team Head – C&B Change in Kotak Interest Rate Updated
01.03.2013 1.9 C&B Team Head – C&B
Religare Finserve Pvt Ltd car lease sold to Magma Fincorp and the car lease tie up will continue with Magma Fincorp, however all other terms and conditions
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remains unchanged
01.04.2013 2.0 C&B Team Head – C&B CRM limits revised. 2 years car lease tenure added Change in Kotak Interest rate updated
01.05.2013 2.1 C&B Team Head – C&B Change in Magma Interest Rate updated
29.07.2013 2.2 C&B Team Head – C&B Change in Magma Interest Rate updated
30.07.2013 2.3 C&B Team Head – C&B Contact details for L&T contact updated
17.10.2013 2.4 C&B Team Head – C&B Penalty charges for delayed payment
23.06.2014 2.5 C&B Team Head – C&B Car cleaning limit increased under CRM
