Parmod Agarwal (Assistant Manager) (394 Points)
01 January 2014Dear All,
Happy New year ,2014.
We are paying Medical Benefits 8% of Basic pay on Quarterly basis transfer on A/c without obtaining any medical Bill from the Employees having Basic Salary Rs. 8500/- Per Month. Above Basic Rs. 8500/- Per Month
we are obtaining medical Bill upto Rs. 15000/- Per annum. My query is that whether this medical Benefit is Perks or Allowance.Please advice.
Thanks and regards
Parmod
@VaibhavJ
(Believe!! Live your dreams!)
(33516 Points)
Replied 01 January 2014
Hi
If Bills are not collected then it is taxable perk else non taxable reimbursement.
Your cos. logic is simple, since employees having basic salary upto Rs. 8500 will be alwayz out of salary bracket so why to collect bills from them!!
Thanks
sir, medical facility or expenditure reimbursements from employer to employee is regarded as allowance and is subject to a maximum of Rs.15000 only. it is not treated as a perquisite in the hands of employee.
perquisite includes sum paid /payable by the employer on behalf of the employees for any obligation payable by the employee
it is from my knowledge if any mistakes in it sorry because iam studying.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
