Seeking Info on Gujarat Companies Offering Canteen Facilities and Tax Rules for Subsidized Meals

Request for information on companies providing canteen facilities to their employees. Companies in Gujarat would be a great help. For the companies providing - Meal / Tea / Snacks / Dry Snacks (takeaway, so that families also get subsidized snacks).

Also, a request for Income Tax rules for subsidized food provided by the employer. I have heard that if the food is 100% subsidized through the canteen, it would be considered as income for the employee and hence taxable.

Thanks & Regards,
Kedar Pradhan

Dear Kedar, Hi, this is Sachin, and I would like to suggest that you please consider taking help or suggestions from the nearby canteen contractors. Thank you.

I have already started searching in nearby companies but wanted to know if our friends have such a facility.

As a matter of fact, you are providing tea, snacks, lunch, and dinner for the employees to increase productivity and not as a requirement for the employees. Your calculation is that if an employee goes for tea, their 30 minutes of work time will be wasted. That's the reason you are providing tea for the employees. These should not be considered as additional benefits for the employees. Instead, you can categorize them under your employee welfare or labor welfare account head, which will receive tax exemption when paying taxes for your company.

Even the expenses on CSR activities can also be exempted from tax. Please consult your company auditor, who can guide you on these aspects.

Kind regards