Providing meals to ee`s

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2013 Dear sir/mam,
A company providing meals to their employees at free of cost, What are the tax implications?

@VaibhavJ

@VaibhavJ (Expert)
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07 February 2013 Hey

Rs. 50 per meal is exempted.. So co. can provide 2 meals per day costing Rs. 100.

So any amount paid per day above Rs. 100 is taxable perquisite.

Thanks!!

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Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 Can u tell me, as per which section of income tax act.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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09 February 2013 a meal voucher to be tax exempt to the extent of Rs. 50 per meal, the meal voucher should be used only during working hours. If an employee consumes two meals a day using meal vouchers in a working day and works for 22 days in a month (excluding holidays on Saturdays and Sundays), then meal vouchers can be tax exempt only to the extent of Rs. 2,200 per month (Rs. 50 per meal x 2 x 22 days). If the organization provides meal vouchers worth Rs. 3,000 for the month, then Rs. 800 (Rs. 3,000 – Rs. 2,200) shall be taxable in the hands of the employee.

Read With Value of free food and non-alcoholic beverages [Rule 3(7)(iii)]

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