Cleaning charges collected during banquet

Nagappa B Nesur (PROPRIETOR) (100 Points)

21 November 2013  

Dear Expert Members,

In case of hotel banquet functions, they collect the "cleaning charges" to clear the Garbage or carpet etc in some cases and not as a standard in all cases. Whether this collection can be set off against Transportation/Cleaning expenses as it is recovery of cost and no service rendered.

Query : Whether recovery can be set of against expenses or to show it as Other receipts/income and charge taxes on that.

 

Please update with your views.

 

Regards.

Nagappa.