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Plz rpl very soon

Soniya (accountant) (93 Points)

22 November 2011

i gonna attempt my CS Executive exam at Dec 2011

1-How much the Free Meal allowance (office time) Exempted 50/- or more than it

2- If a person working in Transport co. How much he exemptet for Transport

A) 70% of Exp or 6000/-

B) 70% of Exp or 10000/-

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5 Replies

Hardeep Singh (CHARTERED ACCOUNTANT) (205 Points)
Replied 22 November 2011

Dear soniya, there is no such meal allowance. Lunch/Tiffin allowance is fully taxable but if however, the employer provides free meal and/Or snacks to its employees then it will be regarded as 'PERK' and tax treatment will be as under:

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Hardeep Singh (CHARTERED ACCOUNTANT) (205 Points)
Replied 22 November 2011

A) for snacks (if given in the office hours) value of perk is 'NIL' B) for meal or paid vouchers provided (if in the office hours/in the business premises) then value of perk will be 'total value of meal provided less an amount equal to Rs. 50 per meal

Hardeep Singh (CHARTERED ACCOUNTANT) (205 Points)
Replied 23 November 2011

less any amount recovered from the employee. but if the employee is provided such snacks or meal in the REMOTE AREA then it will be FULLY EXEMPT. and for transport any transport allowance/running allowance received by transport employees is exempt the

Hardeep Singh (CHARTERED ACCOUNTANT) (205 Points)
Replied 23 November 2011

lower of 70% of the allowance received or 10000p.m. but if such transport employee is in the receipt of daily allowance then transport allowance will be fully taxable. hope this will clear you happy to help! n best of luck

Soniya (accountant) (93 Points)
Replied 24 November 2011

thnx for reply nd give me valuable suggetion bt actually in my scanner there is a quesion in which the value of snacks is 50/- & meal 120/- bt both show exempted in the solution....