perquisite valuation
This query is : Resolved
16 April 2010
I will be appearing for pcc in may 2010.please refer to the newsletter issued by ca institute of april.It is written there that new perquisite valuation rule will not be applicable for 2010 exams.Erstwhile rule 3 will be applicable.plaese clear my doubt as to what to do whether to follow the old methods of AY 09-10 or the new ones.Please tell me how to treat motor car,credit card expns,club facility,free meals for may 2010 exams.
17 April 2010
10 August 2024
For your May 2010 PCC exam, where it is noted that the new perquisite valuation rules will not apply, you should indeed follow the erstwhile Rule 3 for the valuation of perquisites. Here’s how to approach the valuation of specific perquisites based on the old rules for the assessment year 2009-10:
### **1. Motor Car**
**Motor Car Provided by Employer:**
- **Car Owned by Employer:**
- **Engine Capacity up to 1,600 CC:**
- **For Personal Use Only:** Rs. 1,800 per month.
- **For Both Official and Personal Use:** Rs. 900 per month, assuming the employer bears the cost of fuel, repairs, and maintenance.
- **Engine Capacity Above 1,600 CC:**
- **For Personal Use Only:** Rs. 2,400 per month.
- **For Both Official and Personal Use:** Rs. 1,800 per month, assuming the employer bears the cost of fuel, repairs, and maintenance.
- **Car Leased by Employer:**
- The perquisite is calculated based on the lease rent paid by the employer plus a fixed value based on the engine capacity.
### **2. Credit Card Expenses**
- **Personal Use of Employer's Credit Card:**
- If the employer provides a credit card and pays the expenses incurred by the employee for personal purposes, the entire amount spent is treated as a perquisite.
- **Valuation:** The total expenses borne by the employer are included in the employee’s income.
### **3. Club Facility**
- **Club Membership Provided by Employer:**
- **Membership Fees Paid by Employer:** The amount paid by the employer for the club membership is treated as a perquisite.
- **Valuation:** The entire amount of membership fees paid by the employer is considered as a perquisite and should be included in the employee’s taxable income.
### **4. Free Meals**
- **Free Meals Provided by Employer:**
- **In Office:** If meals are provided on the premises and during working hours, it is generally not treated as a perquisite.
- **Outside Office:** If meals are provided outside office hours or off the premises, the value of the meal is treated as a perquisite.
### **Summary:**
For the PCC exams in May 2010, you should follow the old perquisite valuation rules (erstwhile Rule 3) as indicated:
1. **Motor Car:** Apply the old rates based on engine capacity and use.
2. **Credit Card Expenses:** Include the total expenses incurred on personal use.
3. **Club Facility:** Include the full amount of membership fees.
4. **Free Meals:** Assess based on whether meals are provided on the premises or outside.
Ensure to refer to the specific details and calculations provided in your study material for accuracy. If the newsletter from the CA institute specifies using the old rules, make sure you adhere to those for your exams.
### **1. Motor Car**
**Motor Car Provided by Employer:**
- **Car Owned by Employer:**
- **Engine Capacity up to 1,600 CC:**
- **For Personal Use Only:** Rs. 1,800 per month.
- **For Both Official and Personal Use:** Rs. 900 per month, assuming the employer bears the cost of fuel, repairs, and maintenance.
- **Engine Capacity Above 1,600 CC:**
- **For Personal Use Only:** Rs. 2,400 per month.
- **For Both Official and Personal Use:** Rs. 1,800 per month, assuming the employer bears the cost of fuel, repairs, and maintenance.
- **Car Leased by Employer:**
- The perquisite is calculated based on the lease rent paid by the employer plus a fixed value based on the engine capacity.
### **2. Credit Card Expenses**
- **Personal Use of Employer's Credit Card:**
- If the employer provides a credit card and pays the expenses incurred by the employee for personal purposes, the entire amount spent is treated as a perquisite.
- **Valuation:** The total expenses borne by the employer are included in the employee’s income.
### **3. Club Facility**
- **Club Membership Provided by Employer:**
- **Membership Fees Paid by Employer:** The amount paid by the employer for the club membership is treated as a perquisite.
- **Valuation:** The entire amount of membership fees paid by the employer is considered as a perquisite and should be included in the employee’s taxable income.
### **4. Free Meals**
- **Free Meals Provided by Employer:**
- **In Office:** If meals are provided on the premises and during working hours, it is generally not treated as a perquisite.
- **Outside Office:** If meals are provided outside office hours or off the premises, the value of the meal is treated as a perquisite.
### **Summary:**
For the PCC exams in May 2010, you should follow the old perquisite valuation rules (erstwhile Rule 3) as indicated:
1. **Motor Car:** Apply the old rates based on engine capacity and use.
2. **Credit Card Expenses:** Include the total expenses incurred on personal use.
3. **Club Facility:** Include the full amount of membership fees.
4. **Free Meals:** Assess based on whether meals are provided on the premises or outside.
Ensure to refer to the specific details and calculations provided in your study material for accuracy. If the newsletter from the CA institute specifies using the old rules, make sure you adhere to those for your exams.
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