Jan 22, 2012

Sodexo Food Coupons an unwanted company in India

Sodexo ( foreign MNC ) Food Coupons are given to employees. It is optional facility. Employees prefer them because it gives tax exemption( a rule created for companies like this). Read about the tax clause below this post. Let us see the disadvantages.
Sodexo is now given even for LIC, RBI ! Source: Rajya Sabha

  • The coupons have validity. I am careless and will forget to use it before the validity period.
  • The shop keepers won't give balance
  • Not all shops accept Sodexo coupons. The shops which accept the Sodexo coupons might charge more usually. eg. 10 kg Double Horse rice costs Rs.339 (MRP Price) , you could get for reduced price from Triveni or Margin Free shops but Sodexho is not accepted in these shops.
  • I tend to treat it different from money and is likely to spend more that I need if I have the coupons that money.
  • There is no consumer relationship between me and Sodexo , eg. If Relaince/More/Spencers/Big Bazaar stop accepting this I don't have a choice to sue them as my company is their customer.

Source: Economictimes

According to 2005 Indian ITAct SECTION 17
Perquisites and its valuation

IX. Free meals : The provision of free meals varies widely from uniform canteen food, coupons, etc., to lavish hotel meals. The scheme of free meals as a staff welfare measure had been recognized and was admissible upto Rs. 35 for each meal. The new rule does not treat as perquisite free food and non-alcoholic beverages to the extent the value thereof does not exceed Rs. 50. Where any amount is recovered from the employee, such amount shall be reduced from the value of perquisite. Such free or subsidized food or non-alcoholic beverages should however be provided at office premises or through non-transferable vouchers meant only for meals during working hours. These vouchers provided by employers should be usable only at an eatery, a restaurant or a cafe. Tea or similar non-alcoholic beverages and snacks - in the form of light refreshments during working hours are not charged as perquisite. Also, arrangements for meals in ‘remote areas’ as prescribed in para 5.1(I) of this Circular and similar off-shore sites as specified, shall be exempt. However, expenditure on provision of free meals by the employer in excess of Rs. 50 should be treated as perquisite, as reduced by recoveries made from the employee.

1 comment:

bella said...

Very nice posting... :-)