In case employee or any other member of his household enjoys the facilities provided in a club and the expenditure for the same is met or reimbursed by the employer the taxable value of his perk shall be equal to the amount spent or reimbursed by the employer.
Value of Perk = [ Amount Spent by the Employer ] – [ Amount charged/recovered by Employer from Employee ]
Cases when Club Facility is Exempt
Initial membership fee where the employer has obtained corporate membership of the club and the facility is enjoyed by the employee or any member of his household.
Club facility used in connection with official work or for business purposes if such expenditure is incurred wholly and exclusively for business purposes and the following condition are fulfilled
Complete details in respect of such expenditure are maintained by the employer which may include the date of expenditure, the nature of expenditure and its business expendency;
The employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
Health club, sports club or similar club facility provided uniformally to all employees by the employer.