Employee benefit expenses or Mess expenses


This query is : Open 

Quick Summary
This discussion clarifies how to account for company-provided employee lunches. The consensus is that expenses incurred for outsourced catering services, where employees are not charged, should be classified under 'Employee benefit expenses', specifically as 'Labour Welfare'.

(Querist)
19 August 2023 Dear Experts,
1 A company is providing the lunch to its employees through its outsourced catering service providers.
2 It does not charge any amount to its employees,
3 The query is:
a.Whether the expenes incurred by the company, needs to be accounted either as Employee benefit expenses or Mess expenses.
4 Pls clarify

19 August 2023 Staff Welfare can be debited............

RAJA P M (Expert)
19 August 2023 Yes, It can be account as Labour Welfare under Employee benefit expenses...


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