Rent paid for directors house-directors remuneration?????
This query is : Resolved
CA Parul Saxena
(Querist)
01 November 2014
1.Mr.X is director i 2 companies A and B.
2.Mr.x resides in a house in Noida and the house is shown as fixed assets in the company B.
3.Company A pays the rent to the company B for the same house in Noida and deduct tds @ 10%.
My query is whether rent paid by company A is to be clubbed in Directors remuneration and taxed accordingly or it is correct to record it as Rent??????????
2.Mr.x resides in a house in Noida and the house is shown as fixed assets in the company B.
3.Company A pays the rent to the company B for the same house in Noida and deduct tds @ 10%.
My query is whether rent paid by company A is to be clubbed in Directors remuneration and taxed accordingly or it is correct to record it as Rent??????????
Ramalinga H.B
(Expert)
02 November 2014
The company is providing a rent free accommodation to the director. Hence it is to be treated as perquisites and tax it as per perquisites valuation.
CA Parul Saxena
(Querist)
03 November 2014
But the company B is receiving Rent there it would be taxed as Rental income.
And Director would also pay tax for rent free accomodation.
Is it not double taxation as the Director is the owner of both the companies??????
And Director would also pay tax for rent free accomodation.
Is it not double taxation as the Director is the owner of both the companies??????
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