Taxability of Sodexo meal coupons

[Mansha]

Respected members

Please enlighten  me regarding the taxability of Sodexo Meal Coupons in the hands of employees.

Thanks

[ashutosh majumdar]

Respected members

Please enlighten  me regarding the taxability of Sodexo Meal Coupons in the hands of employees.

Thanks

Well, s. 17(2)(vii) defines "perquisite" to mean "the value of any other fringe benefit or amenity as may be prescribed".

Rule 3 (7) (iii) provides for the valuation of fringe benefits in the following words:

The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:

Provided that nothing contained in this clause shall apply to free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.

So, Sodexho Meal Coupons are a "perquisite" but exempt to the extent of Rs. 50 per meal.

[vsaiyar]

The coupon is given to employee for meals.  What is noticed that the sodexo coupons are used to buy goods from Malls.  If detected this could cause problems.

[Mansi Thakkar]

Hi, I have a related query here. The Rule does not define the term 'meal'. In this case, Rs.50 per meal is allowed for how many meals a day? Any decision or judgment on this aspect of the exemption?