Tea/Snack Amount in Salary Slip

Save Share

This query is : Resolved

mk (Querist)

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

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

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.

CA. Vineet Grover

CA. Vineet Grover (Expert)

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now