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Tally ERP 9 Entry

Elbin (Accounts ) (77 Points)

16 August 2023

Is bonus & leave Encashment a direct or indirect expense while paying to factory workers or labourers ?

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5 Replies

Yasaswi Gomes new (Finance ) (4520 Points)
Replied 16 August 2023

Bonus to workers who work on production is a direct expense. Payroll is to seperate form which seggregates executive income vs wages on production floor. Tds is applicable on bonus by the way. Wages means direct expense. Supervisors and managers on the floor means direct expense. Leave encashment? You get certain leaves, and if you don't take leaves for a healthy man, the company will pay you but need not necessarily be

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 August 2023

As per Your query:

BONUS - Indirect Expenses...

LEAVE ENCASHMENT - Direct Expenses...

Yasaswi Gomes new (Finance ) (4520 Points)
Replied 19 August 2023

@ Raja PM guy your wrong. I don't know the answer but I'll prove it otherwise.

Yasaswi Gomes new (Finance ) (4520 Points)
Replied 19 August 2023

Bonus depends upon in the line of fire and admin. But bonus calculations including tds is mandatory. Admin are really cheper that they don't deserve anything when they have no knowledge. Leave encashment is not a big deal- are you a direct worker or indirect worker? Indas is like that.