06-17-2009, 08:34 PM
Omeir,
Although, Awais has replied correctly, just would like to add few other things with regards to the first reply,
As per under Chapter III, Part II, Clause 12(C)(Summary Being Quoted) All perquisites, <b>other than those which are specifically being provided for the performance of the employeeâs duties of employment,</b> will be taxable.
It means those perquisites, which have been provided exclusively for the purpose of employment will be exempt from tax.
With regards to the aforementioned, nature of perquisite is important, it will be added in the income of the director if it is personally used by him,else it will be exempt.(In both the cases, WHT with be setoff against director's Tax Liablity)
Furthermore, where segregation, with regards to the benefit is unexplained, as per common practice, benefits are declared in favour of Employee.
Best Regards,
Although, Awais has replied correctly, just would like to add few other things with regards to the first reply,
As per under Chapter III, Part II, Clause 12(C)(Summary Being Quoted) All perquisites, <b>other than those which are specifically being provided for the performance of the employeeâs duties of employment,</b> will be taxable.
It means those perquisites, which have been provided exclusively for the purpose of employment will be exempt from tax.
With regards to the aforementioned, nature of perquisite is important, it will be added in the income of the director if it is personally used by him,else it will be exempt.(In both the cases, WHT with be setoff against director's Tax Liablity)
Furthermore, where segregation, with regards to the benefit is unexplained, as per common practice, benefits are declared in favour of Employee.
Best Regards,
