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Is Sodexho is fully exempted or not? (Income Tax)

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This query is : Resolved


( Author )
09 June 2009

Dear Experts,

Can the employer provide meal vouchers like Sodexho coupons as part of the CTC.

If yes is there any maximum limit or condition to be satisfied for getting the Tax exemption like Rs.50 per day under wealth benefit act or whatever the amount is fully tax exempted.

Thanks in Advance
L Karthik Prakash



Manmohan ACA, CS

( Expert )
10 June 2009

yes, it is fully exempted


Karthik

( Author )
10 June 2009

Dear Mr. Manmohan,
Can you please explain that under which section it is fully exempted, because I want to prove to my head clearly.

Thanks in Advance
L Karthik Prakash


Karthik

( Author )
10 June 2009

Dear Mr. Manmohan,
Can you please explain that under which section it is fully exempted, because I want to prove to my head clearly.

Thanks in Advance
L Karthik Prakash


CA. Amit Daga

( Expert )
10 June 2009

Its allowance given by the company. Please refer section 17 of the income tax act


Manmohan ACA, CS

( Expert )
10 June 2009

Services provided at free or concessional rates are gaining popularity. Concessional food,become taxable in the hands of the employer.
Sodexho coupons are being provided to the employees over and above the individual salaries. Even though this is exempted in the hands of the employee, the employer has to pay the fringe benefit tax on the same


Karthik

( Author )
11 June 2009

Dear Mr.Amit Daga,

As per your guidance U/s 17 of Income tax act.
IX. Free meals : The provision of free meals varies widely from uniform canteen food, coupons etc. to lavish hotel meals. The scheme of free meals as a staff welfare measure had been recognized and was admissible up to Rs. 35 for each meal. The new rule does not treat as perquisite free meals if the cost per meal does not exceed Rs. 50. Where any amount is recovered from the employee, such amount shall be reduced from the value of perquisite. Such free or subsidised meal should however be provided at office premises or though non-transferable vouchers meant for only meals during working hours. These vouchers should be provided by employers encashable only at an eatery, restaurant or a cafe. Tea or similar non-alcoholic beverages and snacks - in the form of light refreshments during working hours are not charged as perquisite. Also, arrangements for meals in ‘remote areas’ as prescribed in para 5.1(I) and similar off-shore sites as specified, shall be exempt. "However, expenditure on provision of free meals by the employer in excess of Rs. 50 should be treated as perquisite, as reduced by recoveries made from the employee."

Reference to the above line as per my understanding, Expenses which exclude Rs.18000/- P.A which means Rs.1500/-P.M. is treated as perquisite (Including Sodexho Meal Vouchers)and it is taxable rest amount am i correct. Please rectify if Iam Wrong.





HARI K V

( Expert )
25 February 2010

Karthik,

In case if u r provided Rs.75 per meal per day, then Rs25(75-50) is taxable as perquisite.

I hope it is clear now. Pl revert bac if thr is any query.


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