If your employer provides you the facility of Club expenses or any other facilities, then the same will be availed as benefits in one hand whereas in second hand it will be taxable. All the non-monetary benefits provided by the employer, are taxable as perquisite. Valuation of taxable perquisite or say amount of taxability is required to be determined and as well as disclosed by the employee.

The Taxable amount of perquisite in respect of club facility (not for official purpose) is determined as follows:

But in case, the employer has obtained corporate membership of the club then the initial fees paid by the employer shall not be included in perquisites (also known as perks).

The above perk will be taxable for business/official purposes only if following conditions are fulfilled:

1. The complete details of such expenditure (including the date, nature, expediency of business) should be maintained by the employer.
2. The employer should handover the certificate of such expenditure in order to prove that the same was incurred wholly & exclusively for the business purpose only.

However, any expenditure incurred by the employer at his own premises regarding Health club, sports facilities etc are exempt.

Also, the initial one time deposits or fees for corporate membership & where benefit does not remain with a particular employee after cessation of employment are exempt from tax.