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Deductible and exempted taxes

Yasaswi Gomes new (Finance ) (4492 Points)

16 July 2023

All operating costs are expensed as per AS 10.

All direct costs are capitalised as per AS 10.

So, can i deduce that all indirect costs are deductible and direct costs are exempted? Is my assumption correct?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168025 Points)
Replied 16 July 2023

Not exactly. The capital expenditures are capitalized means are not directly available to be expensed in same or single financial year. Only revenue expenditures are allowed to be expensed out in same FY, they are also categized under Direct & Indirect Expenses,..

Capital expenditures are expensed out as per their life span.

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Yasaswi Gomes new (Finance ) (4492 Points)
Replied 16 July 2023

But ppl know it vaguely that WDA is claimed in advance or end. Just the same all capitalised items have a tax claim and that's why they are amortised. Revenue items are not my concern

sabyasachi mukherjee (27129 Points)
Replied 18 July 2023

All operating cost as per as10.

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Yasaswi Gomes new (Finance ) (4492 Points)
Replied 22 July 2023

Does anyone know if as per the factories act 1988 if canteen and it's free food services are direct expenses or indirect? There is a threshold limit of 100 employees or so but not clear to understand

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (168025 Points)
Replied 22 July 2023

Section 46 in The Factories Act, 1948

The State Government may make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers.
Without prejudice in the generality of the foregoing power, such rules may provide for -
- the date by which such canteen shall be provided;
- the standards in respect of construction, accommodation, furniture and other equipment of the canteen;
- the foodstuffs to be served therein and the charges which may be made therefor;
- the constitution of a managing committee for the canteens and represen- tation of the workers in the management of the canteen;
  ⁸⁵[(dd) the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of foodstuffs and which shall be borne by the employer;]
- the delegation to the Chief Inspector subject to such conditions as may be prescribed, of the power to make rules under clause (c).