R.Suresh (Sr. Executive) (394 Points)
19 March 2009In my friend Company providing Meal Pass (SODXEO) to employees in that any limit for this available or it is depending upon the company rules, and also the Meal pass can claim dedcution under the tax exemption.
Please clarify
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 19 March 2009
Food Coupens are totaly exempt from Tax and company's policy decides the limit of food coupens.
Abhinav Agarwal
(M.Com C.A SAP Consultant)
(814 Points)
Replied 20 March 2009
Hi
there is a limit also if i am not wrong. The limit is Rs. 50 per day
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 20 March 2009
The Central Board of Direct Taxes has clarified that employees are not to be taxed when they are issued non-transferable food coupons usable only at food outlets.
There is no limit laid down by law on the amount that can be paid through such coupons. Similarly, the employer is also not chargeable to Fringe Benefit Tax on the same.
So there is no limit. The one you are talking about is diff.
Abhinav Agarwal
(M.Com C.A SAP Consultant)
(814 Points)
Replied 20 March 2009
hi Prakash,
what i remember before introduction of FBT is, there was a limit of Rs.50 per day. I am not very sure about the current status. I tried but not able to find any suct clause.
I think you are absolutely right.
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Food coupons which are not transferable and usable only at eating joints or outlets is not to be treated as a perquisite and taxed in the hands of employees.
Such coupons, which are prepaid, are also not liable for FBT. There is no limit on the amount that can be paid by way of such coupons and would be non-taxable in the hands of employees.
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Rupesh Jha
(M.Com CA PhD* and MBA*)
(1116 Points)
Replied 24 April 2009
YES MR. ABHIANV LUNCH PROVIDED TO EMPLOYEES ON WORK PLACE ARE FULLY EXEMPTED THERE IS NO LIMIT.
VARUN
(PCC STUDENT)
(523 Points)
Replied 25 April 2009
yes ... i think prakash is right
Regards,
Varun Makhija
vijay
(.)
(212 Points)
Replied 25 April 2009
Hi Mr. Suresh,
Lunch provided by the company is fully exempted but if the company is issuing Food Coupons. Then if the value of that coupon exceeds Rs. 5 it will be taxable in the bands of employees as a perquisite or in the hands of employer if he/she/it is subject to FBT,
Hope you will find this information helpful.
Regards
Vijay Kumar
Divya Karthik
(S)
(459 Points)
Replied 30 April 2009
An individual has filed her returns for the AY 2007-08 on 14th August having a refund of Rs.6000/-.Now the IT Authorities says that the due date of filing revised returns has expired.What is the duration of filing revised returns for the AY 2007-08?
Dinesh Khurana
(Service)
(95 Points)
Replied 30 April 2009
Yes, Non-transferable food coupons are totally exempt from Income Tax
M.M.SURANA
(Director -Taxation )
(532 Points)
Replied 01 May 2009
Pl. refer sec. 115WB(2)(B)
Exempted FBT :
1. Fixed lunch/ refereshment allowance
2. Food/ beverages provided / or for paid by the employer for emloyees in office / factory/own trainning centre.
3. Payment through paid vr. which r not transferable.
4. Pyament through non transferable pre paid electronic meal card usable at eating joints or outlets. w.e.f. A.Y. 2009-10
Surana/Chennai
9952967237
CAclubindia
