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| | The Bangalore Business Network Network is not currently active and cannot accept new posts | | Is it a scam? | Views: 1171 | | Jan 07, 2012 5:24 am | | Is it a scam? | # | 
V Kumar | | When I stand in queue to make payment for groceries at Foodworld, More or Spencer, I used to get upset when guys in front have their trolleys full and pay through their Sodexho coupons while I dole out Rs 500 notes from my wallet. They not only took time at the cash counter but bought high cost stuff easily which I would rarely buy.
Back in car as I grumble on Sodexho coupons, my wife teases me that I am jealous as I am out of the corporate world for ten years.
Might be true. But in my opinion, the treatment of Sodexho food coupons is bad in law. Income Tax Act clearly states that any amount incurred by employer on employee which otherwise would have been incurred by the employee is taxable. How can the groceries, food, toiletries bought by the employees through these coupons not taxable in the hands of the employee? Then one can design travel coupons, clothing coupons etc and call it fringe benefit! Private Reply to V Kumar | | Jan 07, 2012 5:53 am | | re: Is it a scam? | # | 
subbu2007 kv | | These are the indian ways of ingeneous tax management by those who think they are smarter than the rest, simply because the IT act drafting babus are smart (think so!)in providing enough escape routes (just like pressure cooker valves)for all those who ask for it, and thereby making a mockery of the act itself and providing employment opportunities for tax consultants who think they are intelligent and also chartered accountants for maintaining accounts for the IT babus to inspect. Don't know when will we, as a society mature enough to stop bebaving like cats that drink milk by closing their eyes. No wonder, recently the Chinese bureaucrat commented, during the recent abduction issue, Indian businessmen should be educated by GoI to conduct their business honestly and transparently. This kind of self deceitful behaviour has become so deeply ingrained in our system and part of our culture!! Private Reply to subbu2007 kv | | Jan 07, 2012 6:46 am | | re: re: Is it a scam? | # |
Ravi Srinivasan | | Dear Kumar & Subbu:
I was surprised when I was informed by a friend of mine who said his company provides coupons for Pubs & Levi's jeans!!
Wow! So much for Fri - N - Ge benefits!! This is what corporates call as smart tax planning not tantamount to cheating / circumventing!!
May god bless this tribe.
Ravi.Private Reply to Ravi Srinivasan | | Jan 07, 2012 7:01 am | | re: re: re: Is it a scam? | # |
subbu2007 kv | | Ravi
this is an orchestration by politicians, policy makers, bureaucrats, business entities, taxmen, chartered accountants and tax legal professionals fooling the public in broad daylight. Who ultimately pays to keep these people employed and the coupon companies in business? the common honest tax payer! We call this business friendly tax policies and tax reforms to benefit the common man. which common man? Private Reply to subbu2007 kv | | Jan 07, 2012 7:23 am | | Is it a scam? | # | 
s venkatesan | | If one remembers clearly there is a law that says one can dole out Sodexo coupons to an amount of 2500 pm per employee. Any thing above that is taxable?
Sodexo is applicable only for food items(meaning eatables), nothing else.
Only during Deepavalli they give a sodexo coupons encashable in select Textile outlets.Private Reply to s venkatesan | | Jan 07, 2012 7:59 am | | re: Is it a scam? | # |
subbu2007 kv | | Venkatesh,
Thanks for the clarification.
It really doesnt matter what kind of wheels within wheels are built in to complicate matters and create jobs for accountants and lawers for case presentation and convoluted arguments. It is sheer waste of public energy to go around the rules. My be ths is the way India generates its GDP from services of accountants and lawyers with no productive outcome, but services to defend ones action which itself is an outcome of shortsighted and motivated policies Private Reply to subbu2007 kv | | Jan 07, 2012 10:30 am | | re: re: Is it a scam? | # | 
Manoj Sethu | | I think those in business got to understand that an employee end sup paying huge taxes because they have no flexibility to put their income under. Businesses have the privilege of showing as many bills as expenses and show loses; a luxury that an employee does not have.
Sodexho and Accor vouchers were introduced as corporate perks which later (during the FBT regime) got tax benefits. This helped employees save up some money.
This works like the travellers cheques, and safer than carrying cash.
Both these voucher companies are large MNCs in the hospitality industry, for e..g, Accor has popular names like Ibis, Mercure and Novotel.
To add, businesses offered these so that their contribution to FBT payments got reduced to a large extent.
Of course, the vouchers were to initially modelled for only purchase of food items, which later got accepted for other non-food items as well. In the last of the FBT, the PC who was the FM, closed all loopholes for vouchers and said it will apply only up to 2500 pm, and only for food items purchases.
Private Reply to Manoj Sethu | | Jan 07, 2012 12:47 pm | | Is it a scam? | # | 
Jasvinder Singh | | Effective 1st Jan 2012, all supermarkets big and small have stopped accepting Sodhexo coupons or other food coupons. Private Reply to Jasvinder Singh | | Jan 07, 2012 2:31 pm | | re: Is it a scam? | # |
subbu2007 kv | | Any reason why they have stopped accepting these coupons, Jasvinder? Private Reply to subbu2007 kv | | Jan 07, 2012 3:22 pm | | re: re: Is it a scam? | # |
Manoj Sethu | | Subbu,
My guess is that retailers have to bear a % of the voucher value as service charge when they claim compensation from the voucher company.
In this economy where retailers are fighting for margins, this added burden may not be viable.
That's probably the reason.
Regards
MSPrivate Reply to Manoj Sethu | | Jan 07, 2012 4:49 pm | | Is it a scam? | # |
s venkatesan | | Thanks for clarifications. All said and done lots of wheels within wheels .. Now the ICA has informed that auditors will be taken to task in the event of any corporate' s do not follow the statuary rules, in that case will they streamline that rules related to sodexho and services charges/ additional charges levied by certain retail stores on the usage of cards .
If from 2012 certain supermarket do not accept sodexho then the fate of such vouchers ? In chennai I think they still accept .. Private Reply to s venkatesan | | Jan 08, 2012 4:07 am | | re: Is it a scam? | # |
V Kumar | |
Manoj Sethu,
I do not agree with your statement “This works like the travellers cheques, and safer than carrying cash”. It is totally wrong comparison and wrong perception. And to say that employees are not able to distribute income under different heads to avoid tax and hence food coupons are introduced!! I would say it is a concept to cheat.
If an employee is not able to save due to high taxes, the employer has to pay more salary and take a hit on their P&L. Or the Govt has to reduce the tax slab and lose revenue. This will benefit uniformly all the citizens whether they are entrepreneurs or working for SMEs or big corporate enterprises.
My posting is not whether Sodexho is allowed under Income Tax act. I am questioning the basic premise of the law itself on allowing it as an exemption, partly or fully.
Employee gets salary. It is his responsibility to take care of his food needs. Why should this be a responsibility on Employers to give food coupons and get it exempted from tax on the hands of employee? Are you saying food expenses of employees should be exempted from tax? Can we give petrol coupons to employees and say it is exempted from tax up to Rs 5000/-?.
Expenses on Health care, Housing and long term savings are exempted for everybody due to some national programs. Food is not like that.
Both Sodexho and Accor are MNCs. Why is there no Indian company offering this service?
Private Reply to V Kumar | | Jan 08, 2012 1:18 pm | | Is it a scam? | # |
Jasvinder Singh | | The reasons for stopping acceptance of vouchers are:
1. Percentage to be shared with the coupon company.
2. Very long time taken by voucher companies to reimburse the amount to the retailers ( approximtely one month)
3. The process of counting vouchers and storing them is very cumbersome and puts a load on retailers as coupons are vaild for food items only and if a customers basket is full of food and non food items, all these have to be separated and cash bills raised for non food items.
4. The number of coupons processed is very high. For example a book containing coupons worth Rs 2500 would contain 50 coupons of Rs 10, 40 coupons of Rs 25 ,12 coupons of Rs 50 and 4 coupons of Rs 100. Private Reply to Jasvinder Singh | | Jan 10, 2012 8:31 am | | re: Is it a scam? | # |
Binndiya N | | Hi
Just to add to this, Sodex ho is a bane to restaurants and retailers , we lose at least 6 % in the bargain plus it takes away the liquidity that cash or even cards offers
If we accept d coupons we lose our margin and if we don't we lose the customer.
It also forces customers to shop at Supermarkets ,rather than the near-by small Mom and Pop Shops
It may be great for the IT professional ,(esp Month end) who receives these goodie coupons from the company , but who really suffers are the retailers and restaurant owners
regards
Binndiya Private Reply to Binndiya N | | Jan 10, 2012 9:43 am | | : Is it a scam? | # |
s venkatesan | | If these coupons are run by MNC, who have deep pockets, why is it that they do not pay upfront (say within 20days) on acceptance of coupon.
There was a proposal to bring plastic card instead of coupons,what happened to that initiative by these MNC's.
I think they are taking us for a ride, by collecting from the Corporates against delivery of coupons and paying the Merchant on a delayed basis, they rotate the money in between ? for what ?
High time something is done about this, why should the merchants get debited for the vouchers, why not the retailers give a 2 to 3 % discount for cash transactions. In that way they do not loose customers and hard cash gets into their kitty.( this they can do to Say NO for food coupons).
Private Reply to s venkatesan | | Jan 10, 2012 10:32 am | | re: : Is it a scam? | # |
Varghese Philip | | The plastic (smart) card version works within the employer's premise. I had one such for the duration of my tenure with a BPO company. This card could be used only at the food vendors operating within the employer's premises.
The company would allow the conversion of the balance on the card (into paper coupons) once a quarter.Private Reply to Varghese Philip | | Jan 10, 2012 12:36 pm | | re: re: : Is it a scam? | # |
Surabhi Kamath | |
There was a rumour that the printing contract for Sodexo coupons were given to a popular minister's family as a return favour apart from big kick back.
Whatever it is, we IT employees look forward to receive these coupons every month. To get groceries and food through these passes! What a thrill!Private Reply to Surabhi Kamath | | Jan 11, 2012 8:11 am | | re: re: : Is it a scam? | # | 
PRABHAKARAN KRISHNAN | | Hi,
Are you telling smart cards will be preferred by the retailers in the near future?
Private Reply to PRABHAKARAN KRISHNAN | | Feb 15, 2012 7:44 am | | re: Is it a scam? | # |
indothai tours | |
India is the only country where you can find advertisement given in new paper by government
"SAVE TAX"
and invest in bonds , bla bla etc.. to save TAX
indirectly asking people top save tax....
Private Reply to indothai tours | | Mar 13, 2012 2:38 am | | re: re: Is it a scam? | # | 
sanjay jain | | Save tax campaign is to create awareness to save in certain categories of investment where u get tax rebates , this is government call
the advantage with Aam Admi is that he could save a big amount over the years which got accumalted in respective saving products such as PPf/post office saving etc, People must save for themselves to take care of themselves , as there is no social security network provided by Indian Govt
As per Tax PLanning please check your respective Pay Slips & you will find a difference in your basic & other allowances that too is Tax Evasion with help of Rules
Enjoy the Tax Structure
Car get depreciated every year but according to IT only businessman can claim depreciation & not salaried
god bless indian democracy
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