Hi all,
I wanted to know whether giving sodexho passes to employees will help the companies to save tax on it or it will be an additional expenditure on company. I want my company to give sodexho passes to certain level of people so how should i approach my boss n make him understand the importance of the meal vouchers for employee motivation. Pls let me know will it be a burden on company or not.
Regards,
Suhrita
From India, Pune
4I wanted to know whether giving sodexho passes to employees will help the companies to save tax on it or it will be an additional expenditure on company. I want my company to give sodexho passes to certain level of people so how should i approach my boss n make him understand the importance of the meal vouchers for employee motivation. Pls let me know will it be a burden on company or not.
Regards,
Suhrita
From India, Pune
Suhrita,
Sodexho passes are tax free. It can be issued to those people who enjoy higher ctc. So u go ahead and try convincing ur management to issue sodexho passes for ur employees. If u want better idea on it call the concern agent and collect the details regarding the same.
From India, New Delhi
Sodexho passes are tax free. It can be issued to those people who enjoy higher ctc. So u go ahead and try convincing ur management to issue sodexho passes for ur employees. If u want better idea on it call the concern agent and collect the details regarding the same.
From India, New Delhi
Hi Suhrita,
Every employee can enjoy tax-free Sodexho Pass Gift Vouchers.
However, gifts given would attract a Fringe Benefits Tax on the corporate at the rate of 6.7%(approximately) of the gifting volume.
No FBT on employer
The definition of ‘Fringe Benefit’ under the new chapter XII H (As per subsection (2) of section 115 WB of Income Tax Act, 1961), excludes-
1. Expenditure on, or payment for, food or beverages provided by the employer to his employee in office or factory;
2. Any expenditure on or payment through paid vouchers, which are not transferable and usable only at eating joints or outlets.
In this section, exemption has been granted completely for paid vouchers provided to the employees. Hence there is No FBT on employer on Sodexho Pass meal vouchers given to employees.
Tax free for employees
With the shifting of tax liability on employer from employees in respect to certain fringe benefits, these fringe benefits, which were hitherto taxable in the hands of employees as perquisite, will no longer be taxable in their hands. Thus those items now chargeable to tax under FBT (Chapter XII-H) have been deleted from Rule 3, which dealt with valuation of perquisites in the hands of the employee. Paid Vouchers being one of the items.
Further, Rules for valuation of perquisites have been amended and clause (vi) has been inserted under Section 17(2) vide notification no. 68/2005 dated 28th February, 2005, as follows:
(2) “perquisite” includes-
(vi) the value of any other fringe benefit or amenity (excluding the fringe benefits chargeable to tax under Chapter XII-H) as may be prescribed:
Since, paid vouchers have been covered under chapter XII H and are also not a prescribed perquisite for valuation they will not be taxable in the hands of employees.
Regards
Pavan
From India, Hyderabad
Every employee can enjoy tax-free Sodexho Pass Gift Vouchers.
However, gifts given would attract a Fringe Benefits Tax on the corporate at the rate of 6.7%(approximately) of the gifting volume.
No FBT on employer
The definition of ‘Fringe Benefit’ under the new chapter XII H (As per subsection (2) of section 115 WB of Income Tax Act, 1961), excludes-
1. Expenditure on, or payment for, food or beverages provided by the employer to his employee in office or factory;
2. Any expenditure on or payment through paid vouchers, which are not transferable and usable only at eating joints or outlets.
In this section, exemption has been granted completely for paid vouchers provided to the employees. Hence there is No FBT on employer on Sodexho Pass meal vouchers given to employees.
Tax free for employees
With the shifting of tax liability on employer from employees in respect to certain fringe benefits, these fringe benefits, which were hitherto taxable in the hands of employees as perquisite, will no longer be taxable in their hands. Thus those items now chargeable to tax under FBT (Chapter XII-H) have been deleted from Rule 3, which dealt with valuation of perquisites in the hands of the employee. Paid Vouchers being one of the items.
Further, Rules for valuation of perquisites have been amended and clause (vi) has been inserted under Section 17(2) vide notification no. 68/2005 dated 28th February, 2005, as follows:
(2) “perquisite” includes-
(vi) the value of any other fringe benefit or amenity (excluding the fringe benefits chargeable to tax under Chapter XII-H) as may be prescribed:
Since, paid vouchers have been covered under chapter XII H and are also not a prescribed perquisite for valuation they will not be taxable in the hands of employees.
Regards
Pavan
From India, Hyderabad
Yes true.. Sodexho meal vouchers do not attract any Tax but there is an upper limit to it Rs.15600/- p.a. and anything above this will attract Fringe benefit tax.
You can also go for a Food Plus card that will be beneficial as the upper limit for non-taxability there is Rs.36000/- p.a.
You can also go for a Food Plus card that will be beneficial as the upper limit for non-taxability there is Rs.36000/- p.a.
It is better you opt for Meal Card provided by Axix Bank. For details, contact the nearest brach of Axix Bank. Regards, Harikumar
From India, Calcutta
From India, Calcutta
Hi All,
Please help me in preparing the below policies for an IT org.
1. Employee welfare activities
2. PMS PPT - what is apprisal, KPA's, KRA's , types of apprisals - general/90/180/360 degrees and whcih is the best suited as per the present senario
3. Project trainees policy.
4. Probation confirmation format
Thankyou verymuch for your support in advance.:icon1:
Thanks
Manager HR
From India, Hyderabad
Please help me in preparing the below policies for an IT org.
1. Employee welfare activities
2. PMS PPT - what is apprisal, KPA's, KRA's , types of apprisals - general/90/180/360 degrees and whcih is the best suited as per the present senario
3. Project trainees policy.
4. Probation confirmation format
Thankyou verymuch for your support in advance.:icon1:
Thanks
Manager HR
From India, Hyderabad
Hi Harikuamr,
Even i m thinking to go for Meal Card option for our company. If you r currently using this meal card in your company, then can you tell me your experience of using this card.
What all other then food & beverages we can buy by using this card.
Waiting for your reply...
From India, Pune
Even i m thinking to go for Meal Card option for our company. If you r currently using this meal card in your company, then can you tell me your experience of using this card.
What all other then food & beverages we can buy by using this card.
Waiting for your reply...
From India, Pune
Hi Friends,
My Views
This Implementing Sudexoooooo Passesssss To The Company Employees And Staffs Will Create An Good Image Of The Company.
Its One Of The New Welfare Measures I Believe..
Cost Wise We Can Reduce Any Other Taxable Fringe Benefits Rather Avoid .
Thank You..
From India, Madras
My Views
This Implementing Sudexoooooo Passesssss To The Company Employees And Staffs Will Create An Good Image Of The Company.
Its One Of The New Welfare Measures I Believe..
Cost Wise We Can Reduce Any Other Taxable Fringe Benefits Rather Avoid .
Thank You..
From India, Madras
Hi,
Meal coupons like sodexho are exempted from tax. The amount is deducted from the employees salary. that way the company is not at a burden to pay the amount.. though they may need to pay service charges to the service provider.
It helps the employee to reduce the tax limit.. you can make three categories of employees say 1000, 2000, 3000 based on their CTC and make necessary deductions from their salary and issue sodexho..
From India, Bangalore
Meal coupons like sodexho are exempted from tax. The amount is deducted from the employees salary. that way the company is not at a burden to pay the amount.. though they may need to pay service charges to the service provider.
It helps the employee to reduce the tax limit.. you can make three categories of employees say 1000, 2000, 3000 based on their CTC and make necessary deductions from their salary and issue sodexho..
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Human Resources Guide for Information Technology Companies.pdf
Companies employing recognition policy.doc