RFA

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suparna k s (Querist)
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05 October 2009 Dear All

In case of computation of RFA, 15% of salary or rent paid whichever is less shall be the value of RFA. If the employee doesnt receive salary and only rent is paid for his residence by the company, then how to calculate RFA?

Kindly clarify the same.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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05 October 2009 Hi Suparna,

Would you please explain how you are not paying salary to your employee as the answer may depend on that? It's a unique situation.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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05 October 2009 This question is still open

Kapil Arora

Kapil Arora (Expert)
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05 October 2009 If Employee not receive salary from employer the there will not be employer & employee relationship exsists so no chance of RFA

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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05 October 2009 Yes I do agree with Expert Kapil Arora but in such a situation the rent paid by the company may be disallowed as it would not be considered as a valid business expenses.

suparna k s

suparna k s (Querist)
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06 October 2009 Dear All,

Let me explain the situation. The director is a NRI. He is not receiving remuneration from the company. His house rent and driver salary is paid by the company.

This is a typical and strange situation. But I dont have answer to reply my friend.

Please reply