A private company has provided a furnished accomodation to its Managing Director. The accomodation is owned by the Company and is given to the MD rent free. Perquisite is valued under 17(2) and the perquisite value is approximately 750000. TDS on the perquisite value is deducted by the Company and amounts to 225000. The querist would like to know how to account for this transaction in the Company's books keeping in mind that the amount of Rs. 750000 is not payable to the MD but a valuation is done for the purpose of 17(2).
Thanks for an early reply
Sanjay
CAclubindia
