"No Benefit For Free Gas, Free Watchman And Gardener From Employer"


As per rule 3(4) inserted by the Notification No. 940 (E) dated 25.9.2001 the perquisite value shall be..
-        the sum equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water.

Where such supply is made from resources owned by the employer, without purchasing them from any other outside agency, the value of perquisite would be the manufacturing cost per unit incurred by the employer.

Where the employee is paying any amount in respect of such services, the amount so paid shall be deducted from the value so arrived at.

The value perquisite in respect of watchman, sweeper, gardener as per old Rule 3 (ba) was 120 per month.

However, as per Notification No. 940 dated 25.9.2001 the value of benefit to the employee or any member of his household in the form of provision by the employer of services of a sweeper, a gardener, a watchman or a personal attendant, as per new rule 3(3) would be the actual cost to the employer, i.e., the total amount of salary paid or payable for such services. It would, however, be reduced by the amount paid by the employee for such services in this case and also in the case of other perquisites.

Thus, it now makes no sense to resort to enjoying free gas, electricity, water charges, watchman, sweeper or personal attendant from the employer because they are taxed on full value based on the concept of cost to the employer.

In view of the above Notification No. 940 dated 25.9.200 1 the employees should be very careful in enjoying the benefit of credit card and reimbursement of expenses on entertainment and presentation articles. For such perquisites the employee should comply with the details mentioned in the said Notification to avoid addition as perquisite
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