22 December 2012
Please help whether TDS is to be deducted on the value of subsidy on food facility during the office hours in the premises of the office. For Example If the Cost of the food is 45/- and is given at 10/- so would Rs 35(45-10) be treated as Perquisite and will be subject to TDS.
Expenditure on free meals in excess of Rs.50 per meal shall be taxable perquisite to the extent of excess amount in hands of all employees, since in your case its not exceeding 50 rupee hence no perks & no worries.
Hope this helps.
Cheerz//Vaibhav Revert for more clarity. Click thank button to convey your appreciation.
23 December 2012
In case of valuation of the cost of the meal, salary paid to the cook and canteen staff is also to be included or just the cost of material will form part of the cost to the company.
As in the one of the case it was observed that the company is overstaffed and hence to utilize this staff they have deployed people in canteen department (Can the reason of over staffing sustain in not including the salary paid to the canteen staff/workers as salary paid to these employee is a fixed cost to the company)
CAclubindia
