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Fooding charges recovered from employees

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 October 2010 Dear Experts,
A mfg Co. is providing concessional fooding to its employees. Thus what are the treatment in hands of the co.in the following cases:

1)If the Co is taking Rs10/- from each employee and rest cost of Rs.20/- is paid by the co.to the canteen chef as total cost.

2) if Rs. 20/- is adjusted from the wages of the employees and the co. pays Rs. 30/- to the canteen chef.

Thnx in advance

02 October 2010 free meals upto Rs. 50 is not taxable as perquisite

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 October 2010 Dear Expert
I need the accounting entry for the same .
The reply is correct in case of taxation.


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