Could you plase elaborate if company is paying Tea/Snack Amount in the Salary Slip to its employees per month at a fixed amount, con it be taken that it is an expense on Food/Hospitality and co. pay FBT on it. Thus making it Tax Free in case of employees.
Or otherwise it should be included in the Taxable Salary of the employee ?
20 January 2008
If the tea/ snack amount is paid as a fixed allowance then it will be taken as income of employees concerned and can not be construed as expense on food/ hospitality.
(1) Remove the allowance from the employees payroll. (2) Instead of allowance the company may personally expend the amount from its own for the benefit of its employees limiting to the allowance limit.
If not the same shall be taxed in the hands of the employees u/s 15
CAclubindia
