Travelling , touring and accommodation [Sub-rule 7(ii) of rule 3 ] If official tour is extended as vacation - where any official tour is extended as vacation the value of such fringe benifit shall be limited to the expenses incurred in relation to such extended period of stay or vacation
Perquisites value =cost of the employer - amount paid or recovered from the employee
For example- if the employee is on offical tour in mumbai for 15 days and the official tour has extended as vacation for 5 days more.the expenses incurred by employee in relation to hotel expenditure,food expenditure (those expenditure which are necessary for stay for more 5 days not included his personal expenditures like an employee bought gift for his /her child . I hope You will understand
Thankyou
CAclubindia
