Chartered Accountant
2731 Points
Posted on 07 January 2009
As per the Income Tax rules, Rule 2......proviso to sub-rule (1) clearly provides that the valuation provisions given in that sub-rule doesn't apply to the valuation of any
"any accommodation provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site, or a dam site or a power generation site or an off-shore site which,—
(i) being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometers away from the local limits of any municipality or a cantonment board; or
(ii) is located in a remote area"
Hence in your case......no valuation provisions shall apply hence the perquisite shall not be taxable....................