Residantial accommodation

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gajendra singh rathore (Querist)
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23 April 2015 BASIC + 25% HRA PAID BY ABC CO. TO OUR ALL EMPLOYEES AND SOME EMPLOYEE AVAIL THE RESIDENTIAL FACILITY .

BUT 25% AMOUNT DEDUCT FROM SALARY AGAINST CHARGES OF RESIDENTIAL ACCOMMODATION WHICH ARE AVAIL THE RESIDENTIAL FACILITY, AND REST EMPLOYEE RECEIVED FULL AMOUNT WITH HRA.

MY QUESTION IS.

1 WHAT THIS IS A FREE ACCOMMODATION .

2 IF NO ,WHAT THE COMPANY WILL HAVE TO PAY SERVICE TAX ON RENT. RECD.

3 AND ACCOUNTING ENTRY OF CHARGES RECD. OF RESIDENTIAL ACCOMMODATION.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 April 2015 1.If free accommodation is given 15% of total salary will be taxed as perks.
2. No service tax payable on rent received for residential house.
3. Account is as rent received.

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gajendra singh rathore

gajendra singh rathore (Querist)
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23 April 2015 that residential place under in 10Lacs Population.

so please tell use regarding preparation of Form 16 ( Salary)

1 first options is 7.5 % add as parks but that is no free accommodation because rent. charge by co.

2 second option less 10% of basic from rent paid and taken rebate under head HRA

gajendra singh rathore

gajendra singh rathore (Querist)
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23 April 2015 thanks for reply, sir

gajendra singh rathore

gajendra singh rathore (Querist)
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23 April 2015 thanks sir,

that residential place under in 10Lacs Population.

so please tell use regarding preparation of Form 16 ( Salary)

1 first options is 7.5 % add as parks but that is no free accommodation because rent. charge by co.

2 second option less 10% of basic from rent paid and taken rebate under head HRA

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 April 2015 1. Add 7.5% and reduce rent charged by company.
2. If for company accommodation 10% rent is paid no HRA can be paid from the company.
HRA exemption can be claimed for the payment in excess of 10% of basic.

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