Understanding Sodexo Coupons: Are There Limits and Tax Implications You Should Know About?

Dear All,

Is there a limit to Sodexo coupons or tax benefits?

1. When I was at Reliance Industries, I was receiving Rs. 1300 worth of coupons, whereas my current company has decided to provide up to Rs. 6000. I understand that there is no specific limit prescribed for meal coupons, and they are subject to Fringe Benefit Tax (FBT). Could someone please clarify if there are any guidelines regarding this?

2. Whenever an employee is absent, the coupon value is added to taxable income, and a deduction is made. Is there a correlation between the number of working days and the distribution of coupons?

Regards,

Yogesh Bisht
09833944848

Dear Yogesh,

As per my knowledge, no limit is fixed for food coupons. However, it should be a reasonable amount, not too high. My CA has given the opinion that the limit should be Rs. 3,500 per month. Food coupons do not attract IT or FBT. If food coupons are part of CTC and you avail authorized leave, then coupons are to be provided for the full amount without deduction. In case of absence, it is as per the company policy or as agreed upon at the time of the interview.

Regards,
BHAVAN

Hi Umesh,

I have implemented Sodexo in my company with a detailed survey. Before the survey, Sodexo informed me that we can have up to Rs. 10,000 as a meal voucher. However, when I visited the Income Tax site, I realized that the maximum amount we can pay for a meal per day is Rs. 75. So, it comes to a maximum of Rs. 2,250. The Income Tax authority states that you can't spend more than that amount on meals; otherwise, it becomes a taxable amount.

Thank you.

Hi Anurag Jain,

I am currently working in a small IT company and we are planning to offer Food Coupons to the staff members very soon. I would like to inquire about the procedure for obtaining Sodexo in Jaipur and how these coupons are distributed to the employees. Could you please provide me with the necessary procedural details?

Thank you for your assistance.

Best regards

Hi All,

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 the 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, the loss of these coupons is 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 the purchase of groceries too.
6. The administrator has to keep a tab of disbursement, and productive time is wasted on generating requests to Sodexo, arranging for payments, getting acknowledgment from employees.
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-conscious and makes his purchases as in point 7, he may actually gain more without Sodexo (e.g., we get more than 10% on MRP).

Regards,
Bala

Can anyone tell me the procedure to buy Sodexo coupons? On what basis do companies provide them to their employees?