Rent free perquisites

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 October 2016 Our company has a few senior managers whom it has given rent free accommodation. However, in their employment contract nothing is mentioned.
Rent agreement of those flats is in name of company and rent is directly paid to owner by company through banking channel.

Company does not include RFA while calculating TDS on salary for those officers.
As an internal auditor, I believe the company is in default.

I want to raise this in audit report. Please tell me if I am correct. Also please tell me what are the liabilities which may fall on company.

06 October 2016 Yes you are right either the company can pay tax on such perquisites or add it to salary and deduct TDS.

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 October 2016 Thank you Sir. Please advise, will society maintenance rent be also part of perquisites?

06 October 2016 Yes it will also be part of perquisites.


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