In accordance with a collective or employment contract, an organization may provide housing for a nonresident employee. Regardless of whether it is a room in a dorm or a small service apartment, it is required to issue a rental agreement.
Renting an service apartment for an employee: design details
As a first option, an enterprise can consider entering into a lease agreement for square meters for an employee directly with individuals. In this case, the rent may be transferred to a bank account, or a monthly cash payment to the employee to pay for the rented accommodation.
The contract can be executed without the names of the employee, there will be enough record that the dwelling is intended for employees of the employer.
There is another option for the procedure of registration, when the employee independently rents housing for living, provides a copy of the contract to the organization. Renting Service Apartments Kolkata for an employee in this case will be paid by the employee. At the end of the month, the employee is obliged to bring a receipt for payment of the rented accommodation to receive compensation. In this case, the acts that the rental services were provided should not be filed.
Practice shows the possibility of registration of rented housing under a sublease contract. Signing such a treaty implies art. In this case, the firm enters into a contract of employment directly with the owner of the property, specifying the terms of a possible sub-leasing.
In parallel with the employees of the organization is an agreement on the sub-lease of residential premises. The employer in this case will be the employer, as employees of the organization as sub- employers. In this case, the tenant does not acquire the rights to use the service apartment. The term of the contract of employment and the term of the contract of sublease must be the same.
Renting a service apartment for an employee can be added to the composition of labor costs, if the rental of residential premises at the expense of the employer is reflected in the employment contract. The tax inspectorate can ensure that the amount for the rent does not exceed 1/5 of the employee’s salary. There are also a number of subtleties:
If the employee pays the service apartment rent independently, and at the end of the month he applies to the accounting department for compensation, the due payments cannot be reflected as expenses.
If the clause on renting a Service Apartment in Kolkata for an employee by an employer is not reflected in the employment contract, then the amount of the rent cannot be attributed to expenses.
With regard to personal income tax, payment for renting a service apartment is considered the income that the employee received in kind. Therefore, this tax is deducted from the cost of living.