canteen subsidy under income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2010 Kindly let me know there is any tax concession for canteen subsidy incurred by companies.

We are having the canteen run by the contractor. We are paying 100 % to the contractor and recovering 25 % from the employee. Balance 75 % treated as subsidy.
If you provide both accounting treatment and taxation aspect, it will be helpful to me.

thanks

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 July 2010 You need to trate as employee expenses under accounting aspect and under IT if the subsidy exceeds the Rs.50 per meal the excess amount added as perquisite in the employee salary