Is there a limit to Sodexho coupon or tax benefit.
1. When I was Reliance Industries I was getting Rs. 1300 worth of coupons, whereas my company has decided to give upto 6000/-. I am given to understand that there is no limit prescribed for meal coupons and it attracts FBT. Can someone please clarify if there are any guidelines?
2. Whenever any employee is absent, the coupons value is added to taxable income and deduction is made. Is there a correlation between the days of working and coupons?
As per my knowledge no limit is fixed for food coupons. However, it should be a reasonalble amount, not too high. My CA has given opinion that to limit to Rs.3,500/- p.m. Food coupons does not attract IT or FBT. If food coupons are part of CTC and if you avail authorised leave, then coupons are to provided for full amount without deduction. In case of absence, then it is as per the company policy or as agreed at the time of interview.
i have implemented sodexo in my company with the detail survey, before survey sodexho told me that we can have Upto 10,000/- as a meal voucher, but when i visited Income Tax site i realized that we can pay max Rs. 75/- per day meal, so it's comes to Max Rs. 2250/-, Income Tax authority says you can't spend more then that amt on meal otherwise it's become taxable amt.
Yes, In our company, we too have implemented Sodexo Meal Pass for employees. I appreciate Umesh's add-ons and my feedback is also the same. Please carefully consider the following before implementing.
1. The Company has to pay in advance to Sodexo.
2. Sodexo covers for loss of coupons from Sodexo to your main office.
3. If you are handing over the meal pass in person to your employees, it is fine.
4. If not and you are couriering, loss of these coupons are not covered.
(Quote from Sodexo - "for each coverage Sodexo will be charging at Rs.250 per
courier" - unquote - In some companies, HR also does not take responsibility
and simply passes it on to the respective departments.
5. Can be encashed by anyone and for purchase of groceries too.
6. Administrator has to keep a tab of disbursement and productive time is wasted on
generating requests to Sodexo, arranging for payments, getting acknowledgement
7. Malls and shops charge at MRP and that is not the case if you purchase from
your regular grocer.
8. If an employee is cost consicious and makes his purchases as in 7, he may actually
gain more without Sodexo (e.g. We get more than 10% on MRP).
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