MOHAN S R (MANAGER ACCOUNTS) (29 Points)
20 November 2011Our company is paying a fixed amount for meals expenses to us while we go on a local official trip. Since it is paid as allowance, should it be included in individual employee's income for Tax calculations?
If it is one time, then we can ignore it. But our marketing personnel are getting huge amounts by this way.
Z
( )
(2965 Points)
Replied 20 November 2011
According to Rule 3(7)(iii)
If free food and non alcoholic beverages are provided by the employer during the working hours (including overtime) AT the office or business premises or though PAID VOUCHERS or tea or snacks or free food and non alcoholic beverages in remote area or on off-shore installation
then TAXABLE VALUE of PERQUISITE shall be taken as NIL
In my opinion this part is applicable for your co.
Otherwise the amount received is taxable in the hands of employees to the extent amount not recovered from the employee. i.e if employee has reimbursed then taxable value of perquisite will be amount incurred by employer for such perquisites less amount recovered (if any).
CA Mangesh Chitale
(B. Com. A.C.A. DISA (ICAI) DIRM (ICAI))
(245 Points)
Replied 21 November 2011
The said amount is taxfree upto Rs. 50 per meal. Amount / Benifit received bove the said limit is taxable.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
