Dear Members,
I'm a HR working for a medium scaled manufacturing sector. I'm in the early stages of my career and I'm also the first HR to this firm. As a developing company today our number of employees has increased from 10 to 50 as in-office and few other employees working in pan-India basis.
There was a growing demand from employees to make possible arrangements for Food(Lunch and Breakfast) facilities at our firm.
When I approached my management, they requested me to make a feasibility study for the need along with cost management.
I have few questions here:
1) How should this budget be treated... is it food expenses of the firm or employee social welfare?
2) Should I charge 30% to 50% of the cost from Employees through CTC.
3) What if an employee don't choose for food and how should I compensate him or her with the food expense incurred for those who opt for?
4) What sort of other procedures I should take care of when it comes to food and safety measures.
Thanks & regards
Keerthana Chandrasekar
From Germany, Georgsmarienhuette
I'm a HR working for a medium scaled manufacturing sector. I'm in the early stages of my career and I'm also the first HR to this firm. As a developing company today our number of employees has increased from 10 to 50 as in-office and few other employees working in pan-India basis.
There was a growing demand from employees to make possible arrangements for Food(Lunch and Breakfast) facilities at our firm.
When I approached my management, they requested me to make a feasibility study for the need along with cost management.
I have few questions here:
1) How should this budget be treated... is it food expenses of the firm or employee social welfare?
2) Should I charge 30% to 50% of the cost from Employees through CTC.
3) What if an employee don't choose for food and how should I compensate him or her with the food expense incurred for those who opt for?
4) What sort of other procedures I should take care of when it comes to food and safety measures.
Thanks & regards
Keerthana Chandrasekar
From Germany, Georgsmarienhuette
These are internal decisions of the company, so there is no standard you can rely on.
1) How should this budget be treated... is it food expenses of the firm or employee social welfare ?
This is a standard business expense and you should put it as food expense, canteen expense or staff welfare expense. All are allowed under income tax act. You can also claim GST ITC as it is an exemption under Sec 17(5) as a statutorily required supply of meals.
2) Should I charge 30% to 50% of the cost from Employees through CTC.
Completely your choice. You can also not charge anything if you wish.
3) What if an employee don't choose for food and how should I compensate him or her with the food expense incurred for those who opt for?
If someone does not opt for the food, he will make his own arrangement. You need not compensate him separately. However, if you are following CTC method, then those not opting for it automatically get a different benefit as you will keep CTC same.
4) What sort of other procedures I should take care of when it comes to food and safety measures.
You need to chose a vendor who has proper facility, good quality control and hygiene levels. Do not go by the lowest rate alone. Have a canteen committee consisting of worker and management representative to monitor food quality and ensure compliance with hygiene regulation.
Incidentally, you will need a FSSAI license
From India, Mumbai
23921) How should this budget be treated... is it food expenses of the firm or employee social welfare ?
This is a standard business expense and you should put it as food expense, canteen expense or staff welfare expense. All are allowed under income tax act. You can also claim GST ITC as it is an exemption under Sec 17(5) as a statutorily required supply of meals.
2) Should I charge 30% to 50% of the cost from Employees through CTC.
Completely your choice. You can also not charge anything if you wish.
3) What if an employee don't choose for food and how should I compensate him or her with the food expense incurred for those who opt for?
If someone does not opt for the food, he will make his own arrangement. You need not compensate him separately. However, if you are following CTC method, then those not opting for it automatically get a different benefit as you will keep CTC same.
4) What sort of other procedures I should take care of when it comes to food and safety measures.
You need to chose a vendor who has proper facility, good quality control and hygiene levels. Do not go by the lowest rate alone. Have a canteen committee consisting of worker and management representative to monitor food quality and ensure compliance with hygiene regulation.
Incidentally, you will need a FSSAI license
From India, Mumbai
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Food .doc
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