Rent a Service apartment for the employee can company. However, it is possible that the employee himself has already rented a house, and the organization only reimburses the cost of employment. Depending on who signed the lease agreement the company or its employee, the procedure for accounting for rent in the calculation of taxes will change.
In addition, the taxation of rent depends on the reason for which you decide to pay the employee the cost of renting housing. These may be legal requirements, a voluntary decision of an organization, written down in an employment contract with an employee, as well as a simple management decision to help any of the employees solve their housing problems.
How to arrange a rental apartment?
This can be done in two ways. First, the head can issue an order and indicate in it, for which the organization rents an apartment and what she is ready to pay.
Secondly, the obligation to rent a Service Apartment in Pune for an employee can be prescribed in the employment contract. If you rent an apartment for an employee whose employment contract has already been signed, you can enter into an agreement to amend the conditions of the employment contract. But do not forget that in this case it will be very difficult to refuse to this employee in the apartment afterwards.
Well, how to arrange the rent itself? There are also options.
The first is that the organization itself concludes a lease agreement with those who rent housing. It is advisable to do so in the event that your duty to rent a Service apartment is stated in the employment agreement with the employee. The lease agreement should indicate who will live in the apartment. It also prescribes the period for which housing is rented, the amount of rent and other conditions.
The second option the employee himself directly concludes a lease agreement with the owner of the Service apartment. The organization reimburses the employee costs. Thus, it is profitable to arrange rent if the obligation to rent an apartment does not follow from the conditions of the employment contract. Further, talking about how to reflect the rental housing in the account, each time we will touch on each of these options.
How to reflect the rental of Service apartments in accounting?
It does not matter from whom you rent Service apartment: from an individual (this is a more common case) or from a legal entity. Moreover, it does not matter if required by law or if you wish, you are renting a house. All the same, expenses in accounting are reflected equally.
What are the costs? You may first have to invest in finding a suitable Service apartment. Many organizations, especially in large cities, prefer to turn to housing agencies. They conclude a contract for the provision of services. When the agency selects Service Apartments Pune, an act of service is drawn up. And then the company pays the work of realtors.