Food facility

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 Our company is planning to provide free food facilities to its employees. What are all aspects to be considered before taking such decision?

Thanks in Advance.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
Follow

09 February 2012 As per rule 3(7)(iii) effective from assessment year 2010-11 the value of free food and non-alcoholic beverages provided by the employer to an employee shall be taxed as perquisite in the hands of the employee and such value shall be the amount of expenditure incurred by such employer.
No perquisite chargeable in the following cases —
(a) free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof either case does not exceed fifty rupees per meal; or
(b) Tea or snacks provided during working hours or;
(c) free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.
“Remote area”, as per Explanation (v) to rule 3 would mean an area that is located at least 40 kilometers away from a town having a population not exceeding 20,000 based on latest published all-India census.
CA MANOJ GUPTA
JODHPUR
09828510543

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

J.Vijai

mahendra zaveri

Prabhakar Manjunath

Ravikumar

Pranab Banerjee

Subscribe Now

Food facility

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA