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Perquisite valuation

Sandeep (in service) (142 Points)

02 December 2008

Dear All,

I have a question on valuation of perquisite.

If a TV is bought for the benefit of the employee by the company, then --

-- What will be the value of Perquisites in respect of use of TV ( movable asset) by employee ? and

-- What will be the value if the asset is sold to the employee in the same year.

Perquisite in respect of use of asset and sale of asset both are chargeable in the financial year ?

Also would like to know if the is asset sold to the employee before completion of one year from the date of purchase, then will the normal wear & tear @ 10% be apllied on the purchase cost of the Aset?

Please advise.

Regards

Sandeep

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(Guest)

If the tv is not sold to employee then the value would be 10% of original cost paid by company for acquiring tv as reduced by the amount recovered from employee.

If it is sold to employee & if it is sold at concessional rate then the difference between the original cost paid by company for acquisition and sum if any paid by the employee.

The reduction of 10% is allowed in case the asset is already put in use & such reduction is availabe for each completed year.

Also refer the attachment for your query(pg no 18)

Attached File : 41 salary circular-ay 2009-10.pdf downloaded: 245 times