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Salary Perq. Urgent pls...

Tax queries 671 views 4 replies

Sale of goods manufactured by the employer at discount (discount availed during

2009-10: Rs. 10,000). The same discount is given by the company to its dealers.

If it would have been sold to the employee at a rate lower than dealers then only it will be exempt?

Replies (4)

NO.... it will be sold below than the avg rate than it wil be calculate as PERqs and the balance will be taxable...

Can you ellaborate ur question. may be i have misunderstood it.... in what sense you asking for exemption.

it will be taxable as follows:

actual cost to employerble

less:amount recovered from employee

balance taxa(if positive)

Even if he sold to employee that will be considered as normal sale only so will be taxable in the

hands of employer if he is not debiting(deducting from salary) this to his salary a/c...if he is debiting salary a/c then it will be

considered as non monetory benefits and will be taxable in the hands of employee as there is no

FBT now.......

Dear Nidhi,

Nice doubt..........!

Tarun is rite, as long as Goods are sold at or above cost nothing will be Taxable....

But next thing is what would be the treatment when "goods are sold at loss" but at the same price at which they are sold to general public......

I think the same also will not be taxable since the very essence of taxing any sum under salary is "employer-employee relationship" - and as such in present situation it cannot be said  that goods were sold as a result of employer - employee relationship.
 


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