Taxability of Guest house

[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

 

AI Summary

Clarification needed on tax status of company-rented flat: rent-free accommodation or guest house? Further details requested. A company has rented a flat used by both an Australian client and an employee. The query seeks clarification on whether the flat should be considered taxable as rent-free accommodation for the employee or treated as a guest house, which would not be taxable for either the employee or the company. The response requests further details on who is responsible for additional expenses like maintenance and electricity to provide a more accurate tax assessment.