Food Coupons

Save Share

This query is : Resolved

Debasish Mohanty (Querist)

28 November 2007 What is the monthly exemption limit for food coupons or foods provided in side the business premises to the employees?
Is the expenes taxable under FBT for the employer?
Regards,
Debasish.

R.V.RAO

R.V.RAO (Expert)

29 November 2007 SEC. 115WB(2)PROVIDES THAT FBT IS NOT ATTRACTED ON EXPENDITURE ON OR PAYMENT FOR FOOD OR BEVERAGES PROVIDED BY THE EMPLOYER TO HIS EMPLOYEES IN OFFICE OR FACTORY AND ANY EXP. ON OR PAYMENT THROUGH PAID VOUCHERS WHICH ARE NOT TRANSFERABLE AND USABLE ONLY AT EATING JOINTS OR OUTLETS.
THERE DOES NOT APPEAR TO BE ANY MONTHLY EXEMPTION /MONETARY LIMIT ON SUCH EXP.
R.V.RAO

Venkatesh Rao

Venkatesh Rao (Expert)

29 November 2007 Dear Debasis,
There is limit of Rs.1300/- pm for Food Coupen exemption.It is calculated as (26 working days*Rs.50/- per day)
There is no FBT and is also not taxable in the hands of employees.

Rgds
Venkatesh Rao
Mumbai

Debasish Mohanty

Debasish Mohanty (Querist)

29 November 2007 Dear Venkatesh,
Per which sec. the limit is Rs. 1300/- pm.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now