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.
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
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.
CAclubindia
