Applicability of section 10(10cc),practice foll in industry

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Puran Singh Dangwal (Querist)
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14 January 2018 Dear Members and experts.
Can you help on this.

How many companies (mostly MNC) do you know take benefit of section 10(10cc) of income tax act.
Means Provide non-monetary benefits to employees(expats etc), Pay tax on the same. But do not gross-up the tax multiple times.

Before sodexo pass case, multiple grossing of tax was a in practice.
And How many of you are of the opinion that tax on salary (not perquisites) paid by employer is a non monetary perqusite.

I just want to know the practice being followed in the industry.

Regards
Puran Dangwal

Rahul

Rahul (Expert)
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15 January 2018 Actually there is no readymade answer to this question.
For Eg a newly setup company which is incurring losses may go for single grossing up i.e tax paid may be treated as non monetary perquisite but at the same time such tax on non monetary perquisite is disallowed under section 40(v). If we look from tax point of view single grossing up may not be beneficial but it does give a cushion to the cash flows.

Rahul

Rahul (Expert)
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16 January 2018 ALso its not Sodexo pass case, its Sedco Drilling

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