Meal coupons

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2014 Dear All,
I would like to know the Tax implication upon issue of meal coupons to employees. Suppose a proprietorship company issue meal coupons to 100 employees worth Rs. 1000.00 each per month then how much Tax can be saved by the employer and is there any relief for the employees.

Anticipating an early response as always.
Thanks & regards

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 February 2014 Meal coupons or voucher will be exempted up to Rs.50 per meal for the meal provided during office hours for non alcoholic foods & beverages

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2014 Dear Mr. Ramesh,

Thanks for your reply but I have few queries as follows:
1. Can employer provide more than one meal during office hour and will it be exempted in the hands of employee.
2. Is there any benefit for the employer to provide meal coupons to employee. If an employer spent 12 lac.(100x1000x12)as a part of CTC how much he will be benefitted out of it.
3. How this 12 lac. would be accounted.

Look forward to an early reply.

Thanks & regards

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 February 2014 1. It depends up on the office hours, usually normal working hours will be 8 hours, one meal is justifiable. but also it cannot be restricted more than one meal

2. Food expenses cannot be Rs. 12 lakhs per annum, it is not justifiable.

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2014 Dear Mr. ramesh,
Thank you once again for your valuable inputs. is it not justifiable if an employer spent for 100 employee x 1000 Rs.coupon each/month x 12 months. Basically I would like to know if an employer spent "X" amount money p.a on food coupon as a part of CTC, then how that expenses would be accounted and is there any additional benefit for the employer for such expenses.

I am grateful to you for your valuable time and suggestion and look forward once again for an early reply from your end.

Thanks & regards

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 February 2014 your query about Rs.12 lakhs not clear. i was under the assumption that one employee Food expenses Rs. 12 lakhs. for 1000 employees it is justifiable only. you can book Rs. 12 lakhs as employee cost and under CTC

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