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The value of benefit to the
employee resulting from the use by the employee
or any member of his household of any moveable
asset (other than assets already specified
in this Rule and other than laptops and computers)
belonging to the employer or hired by him shall
be determined at 10% per annum of the actual cost
of such asset or the amount of rent or charge
paid or payable by the employer, as the case may
be, as reduced by the amount, if any, paid or
recovered from the employee for such use.
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The value of benefit to the employee arising from
the transfer of any moveable asset belonging
to the employer directly or indirectly to the employee
or any member of his household shall be determined
to be the amount representing the actual cost of
such asset to the employer as reduced by the cost
of normal wear and tear calculated at the rate of
10% of the such cost for each completed year during
which such asset was put to use by the employer
and as further reduced by the amount, if any, paid
or recovered from the employee being the consideration
for such transfer.
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Provided
that in the case of computers and electronic items,
the normal wear and tear would be calculated at
the rate of 50% and in the case of motor cars at
the rate of 20% by the reducing balance method.
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The
value of any other benefit or amenity, service,
right or privilege provided by the employer shall
be determined on the basis of cost to the employer
under an arms' length transaction as reduced by
the employees' contribution, if any.
- Provided
however, that nothing contained in this sub-rule shall
apply to the expenses on telephones including a mobile
phone actually incurred on behalf of the employee
by the employer.
- This
Rule shall come into force with effect from the 1st
day of April, 2001. Provided that the employee may,
at his option, compute the value of all perquisites
made available to him or any member of his household
for the period beginning on 1st day of April, 2001
and ending on 30th day of September, 2001 in accordance
with the Rules as they stood prior to this amendment.
Explanation-
For the purposes of this Rule -
- "accommodation"
includes a house, flat, farm house or part thereof,
or accommodation in a hotel, motel, service apartment,
guest house, caravan, mobile home, ship or other floating
structure;
- "entertainment"
includes hospitality of any kind and also, expenditure
on business gifts other than free samples of the employers
own product with the aim of advertising to the general
public;
- "hotel"
includes licensed accommodation in the nature of motel,
service apartment or guest house;
- "member
of household" shall include
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spouse(s)
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children and their spouses
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parents
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servants and dependants;
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