Tds applicability on sodex coupons purchased by company

Dear friends,

Please suggest on the following aspects.

1. Company paid 60000 for sodexo coupons for employees as a single payment by cheque. Is there any need to deduct TDS from Sodex company while making the payment?

2. Howmuch amount is allowed  as exemptionfor sodexo coupon to an employee per month under Income Tax?

3.Suggest the correctness of Journal Entry for sodexo copupons.

Gross Salary a/c Dr            100000

    To Prof. Tax                                              200

    To PF                                                      3600

     To TDS                                                   15000

     To Sodexo coupons(20 workingdays*100) 2000

      To Medical Expenses Reimbursement     1250

       To Salary Payable                                 77950

Thanks in Advance,

Balu

Replies (1)

Sodexo coupons upto Rs. 50 per day is exempt from tax for the employee.
 

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