Free lunch by a hotel business - perk?
This query is : Open
29 January 2017
Hello,
My question is that imagine there is a corporate having business in catering sector. All the employees have their lunch in branches and no formal record maintained for the same. Will it amount to perks?
29 January 2017
Section 17(2)(viii) read with Rule 3(7)(iii) - Free food and beverages provided to the employee
1) Fully Taxable: Free meals in excess of Rs. 50 per meal less amount paid by the employee shall be a taxable perquisite
2) Exempt from tax: Following free meals shall be exempt from tax
a) Food and non-alcoholic beverages provided during working hours in remote area or in an offshore installation;
b) Tea, Coffee or Non-Alcoholic beverages and Snacks during working hours are tax free perquisites;
c) Food in office premises or through non-transferable paid vouchers usable only at eating joints provided by an employer is not taxable, if cost to the employer is Rs. 50(or less) per meal.
1) Fully Taxable: Free meals in excess of Rs. 50 per meal less amount paid by the employee shall be a taxable perquisite
2) Exempt from tax: Following free meals shall be exempt from tax
a) Food and non-alcoholic beverages provided during working hours in remote area or in an offshore installation;
b) Tea, Coffee or Non-Alcoholic beverages and Snacks during working hours are tax free perquisites;
c) Food in office premises or through non-transferable paid vouchers usable only at eating joints provided by an employer is not taxable, if cost to the employer is Rs. 50(or less) per meal.
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29 January 2017
But sir i clearly mentioned that there is no formal records maintained. now answer me whether it is mandatory to include it in perks? anyway thanks for your detailed answer...
29 January 2017
Since the food is provided during working hours, it is NOT taxable
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29 January 2017
thanks sir
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