Employees were earlier provided asset basket in terms of interest free advance. Every year employee used to pay tax on perquisite on assets held by them and on seperation, are provided an option to buy at a lower rate. Now with dismantling the scheme, company wants to sell all these to employees subject to VAT and if amount is not paid in single instalment, then as per I T Act, it will be considered as interest free loan and hence perquisite be taxed. My q is that employee is transferred to a different state but family has not moved and company has not transferred book records to the new state books of records ( State B). Family is in State A where company is headquartered. What will be VAT rates ? Is employee bound to buy these?
Please clarify
