Useful Information to Corporate Clients

Extract of The CBDT's Circular No. 727 of 27/10/1995 [216 ITR (St.) 98]  from Income Tax Dept.:

"From the assessment year 1996-97 and onwards, food and beverages provided by the employer to its employees (irrespective of salary limits) even outside the place of work, but during office hours - in the hands of employee, the amount upto Rs. 35 per day (Rs. 50 in 2002) will not be treated as income, provided the amount is paid by the employer directly to the caterer, restaurant, eating place, canteen etc."

Before entering into a contract with a caterer, please check the following credentials to avoid any inconvenience from the Government Agencies at a later date:

1. Do they have a valid license from the Corporation for preparation and sale of food items?
2. Do they have a valid license form the Corporation for anti- adulteration?
3. Are they registered with Sales Tax and have valid dealer number?
4. Are they regular assesses with Income Tax and have a PAN?
5. Are their employees covered under ESI & PF?
6. Do they have a valid license as per the Shops & Establishment Act?
7. Do they have a valid license form the Labour Department?

Back

Home  |  Profile  |  Services  |  Clientele  |  Gallery  |  Advantages  |  For a Cause  |  Enquiry  |  Contact