Taxability of Guest house, Income Tax

[Amit Parekh]

Hello everyone,

             My query is as follows:

My Company has taken a flat on rent. The Australian client of company stays in the flat whenever he visits India. Apart from that an employee of company stays in that flat. So is the flat taxable as rent free accomodation in employee's hand or we can take a stand that as client also stays in that flat, it is like a guest house which is not taxable for employee as well as company. Pl explain tax consequenses

Thanks in advance

Amit Parekh

 

Posts / Replies

[CA GOPALJI AGRAWAL]

Please let us know who is bearing the other charges like maintenance, electricity etc.