Tea/Snack Amount in Salary Slip
This query is : Resolved
19 January 2008
Dear Sir,
Could you plase elaborate if company is paying Tea/Snack Amount in the
Salary Slip to its employees per month at a fixed amount, con it be
taken that it is an expense on Food/Hospitality and co. pay FBT on it.
Thus making it Tax Free in case of employees.
Or otherwise it should be included in the Taxable Salary of the
employee ?
Pls advise the correct treatment
Regards,
MK
Could you plase elaborate if company is paying Tea/Snack Amount in the
Salary Slip to its employees per month at a fixed amount, con it be
taken that it is an expense on Food/Hospitality and co. pay FBT on it.
Thus making it Tax Free in case of employees.
Or otherwise it should be included in the Taxable Salary of the
employee ?
Pls advise the correct treatment
Regards,
MK
20 January 2008
If the tea/ snack amount is paid as a fixed allowance then it will be taken as income of employees concerned and can not be construed as expense on food/ hospitality.
21 January 2008
Hi MK,
The following may be done to save tax:
(1) Remove the allowance from the employees payroll.
(2) Instead of allowance the company may personally expend the amount from its own for the benefit of its employees limiting to the allowance limit.
If not the same shall be taxed in the hands of the employees u/s 15
Rgds/
Vineet
The following may be done to save tax:
(1) Remove the allowance from the employees payroll.
(2) Instead of allowance the company may personally expend the amount from its own for the benefit of its employees limiting to the allowance limit.
If not the same shall be taxed in the hands of the employees u/s 15
Rgds/
Vineet
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