In case employer has provided the free services of a sweeper, a watchman or a personal attendant, the taxable value of this type of perquisite shall be the actual cost to the employer i.e., salary etc. paid or payable by employer to these servants. In case any amount is paid by the employee for these services then the value of perquisite shall be reduced by such amount.
Value of Perk = [Amount spent by Employer] – [ Amount Charged/recovered by Employer from Employee ]
Case when this perk is taxable in case of all employees.
In case these domestic servants are engaged by the employee and their salary etc. is paid or reimbursed by the employer, the value of these perks is taxable in the hands of all types of employees whether specified or non-specified because the liability of employee has been paid or reimbursed by the employer. It is so because in this case, it becomes obligation of employee met by employer as per Section 17(2)(iv). But in case these servants are engaged by employer and then their services have been provided free to the employee, the value of perk will be taxable in the hands of a specified employee only.