## Valuation of Gas, Electricity or Water [Rule 3(4)]
### Taxability — depends on whose name the connection is in
| Situation | Taxable for |
|---|---|
| Employee takes the connection; employer reimburses the expense | All employees |
| Connection/supply is in the employer's name | Specified employees only |
### Gross perquisite value
| Source of supply | Value |
|---|---|
| Employer pays an agency for the supply | Amount paid by the employer to the agency |
| Supply from employer's own resources | Manufacturing cost per unit incurred by the employer |
- Any amount recovered from the employee is deducted.
### Pattern recognition
Note the recurring twin structure across Rules 3(3) and 3(4): reimbursement to the employee → taxable for all; facility/supply in employer's name → taxable for specified employees only. The valuation then turns on whether the employer buys it from an outside agency (use the amount paid) or produces it in-house (use manufacturing cost per unit).