House property of company

it will be considered as an business expense.  the flat is given by the company for the residence of the director.   The director is working for the company & is rendering services to the company whihc is generating revenue to the company.  So teh expense on account of rent incurred by the company on behalf of the director will be considered as an business expense.

The rent will treated as an taxable perquisite in the hands of the director by way of rent free accomodation. refer rule 3 for more details