Rule 3, valueation of perks, Meals coupons

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This query is : Resolved

Hari Vinod (Querist)

10 July 2011 Dear Friends,

the rule talks of tax exemption on meals coupons of Rs.50.00 per meal. The word meal is no-where defined.

Can we take a stance that meal includes break fast, lunnch and tiffin, which can be served during office hours? andclaim exemption for 2-3 meals per day (Rs.100-150.00) per day?

vijayakumar.sure

vijayakumar.sure (Expert)

11 July 2011 Definition of meal: The portion of food taken at a particular time for the satisfaction of appetite; the quantity usually taken at one time with the purpose of satisfying hunger; a repast; the act or time of eating a meal.

If any word in IT is specifically explained we need to take that meaning or else general meaning to be taken.

Also if you go to a hotel and order for a meal they can't serve idli or dosa since the meaning of the word meal is different from breakfast.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

11 July 2011 Anything served to the staff during his duty hours is meal and it is exempted from tax

CA CS CMA Sanjay Kumar Sareen

CA CS CMA Sanjay Kumar Sareen (Expert)

12 July 2011 MEAL NEED TO UNDERSTAND TO INCLUDE BREAKFAST,LUNCH,DINNER OR SNACKS DURING THE OFFICE HOURS.NORMALLY TWO MEALS ARE POSSIBLE IN DUTY HOURS. ACCORDINGLY MANY COMPANIES ARE ISSUING MEAL COUPONS OF RS 50 EACH FOR TWO MEALS IE 2x 50x 25 DAYS=2500 AS TAX FREE PERQS. RULE 3(7)(iii) DOES NOT PRESCRIBE HOW MANY MEALS IN A DAY.

U S Sharma

U S Sharma (Expert)

12 July 2011 serving of meals and meal vouchers are diff, company accounting policy defines these, they buy bulk coupans and distribute, this does not works as meals to employees, but it goes as added perks.

the value of coupans are debited from accounts on the date of purchase of meal coupans, not at the time of lunch or tiffin of employee.