can purchases of electrical items and house keeping items be charged to purchases under hotel company??
2 Replies
CA Anoop Dangwal
(CA, M.com, B.com,)
(899 Points)
Replied 05 August 2011
Housekeeping items can be treated as purchases , but electical items may not be treated as purchases.
Normally, material used for providing the end service is charged as purchases. Like, in manufacturing company , for recognising as purchases , there should be relationship between material and end product.
varun maingi
(ca final)
(72 Points)
Replied 14 August 2011
Anoop as u have said that it should have relationship with end product which is a gr8 pnt
so as hotel indus work is to give services to the customer and electrical equip like AC is a kind of service only
And one more point recently there was a news of govt charging service tax on AC ROOMS so from that point of view also Electrical items also be shown as purchases as service tax is charged on services only.
its my interpretation please correct me if i am wrong
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