04 August 2018
Dear Experts, I have a query regarding that the payment of wages to the workers employees at factory in a typical rural area. The issue is that there is heavy labourer turnover and secondly these labourer want the payment in the others bank accounts and so on (thing is that the credit accounts is not fixed however we have take many steps to credit the wages to the right persons account only but this is not possible due to heavy impact of labourer union) now we are bound to pay the labourer at their willing account (which is changing almost every month). Now please guide me how I shall deal in my accounting as there is an number of accounting is opened in my accounting software.
04 August 2018
in this case 3rd party transaction was not allowed as per Income Tax, means that worked by one person and salary received by another person bcus for this transactions, credited to another. book of accounts and expenses are all quiet common you make a provision entry for the week this much of wages have to pay, but at the time of transfer the payment will not go to the right person due to some issues, so I think we avoid this type of transaction if it was not unavoidable you should maintain the salary register and get a signature from the employee is must. And if possible if wages is upto the limit please pay the wages by cash and get a signature., this is my opinion.
CAclubindia
