Whether the accomodation facilities provided by a company to its staffs in its staff quarters constitute supply?
if yes, under which head?
a)under SCH-I(2) OR
b)under SCH-II(4)(b).
1) If such accomodation facilities are provided to employee/staff pursuant to contract of employment -> not a supply at all, refer schedule III , entry 1
2) If such accomodation facilities are provided to employee/staff not pursuant to contract of employment & value of service exceeds 50,000- it will be supply under schedule 1(b).
Note -> Schedule II should not be used for deciding whether given transaction is a supply
It should be used ONLY for classification of a transaction which already constitutes supply as per 7(1)
Refer - Section 7(1A)
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CAclubindia
