rent free accomodation
Querist :
Anonymous
(Querist) 09 March 2011
This query is : Resolved
Please tell me what is the scope of rent free accomodation. Accomodation provided by the employer in the building which it owns and is alleged by co-operative housing society that its commercial use of building. is commercial or residential use? and, why?kindly reply soon.
Guest
(Expert) 09 March 2011
When the company is not deriving or earning any revenue out of the property, how a rent free accommodation can be considered as being in commercial use? Rather, the company is providing the accommodation to its employee without charging any rent from him. That means the company is losing even interest on its capital spent on the property.
PS Dhingra
Chief Executive Officer
Dhingra Group of Management & Vigilance Consultants
New Delhi-110089
Mobile: 09968076381
[dcgroup1962@gmail.com]
Querist :
Anonymous
(Querist) 09 March 2011
Thank you, Sir.
Also, could you please specify any statutes or case laws in context of the same?
Are their any tax benefits (rebates etc.) for the employer company?
Guest
(Expert) 09 March 2011
Employer does not get any tax benefit for providing a rent free accommodation to its employee.
Sorry dear, you are asking everything on just hypothetical basis without providing any detail for which purpose you want to know all that. There may be hundreds of case laws, but any case law depends upon the particular nature and purpose of filing of the case. A case law in one type of case cannot be applied on the other type of the case.
Raj Kumar Makkad
(Expert) 09 March 2011
It is not a commercial use as clearly answered by Dhingra ji.
Querist :
Anonymous
(Querist) 10 March 2011
Makkad Sir, Thank you. Kindly refer me some case laws/precedents which are supportive of confirmation this fact.
I shall be thank ful for the same.
