Labour payments >20,000 Rs. Single cash entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011
Dear all,

We engages 200 laborers to work in our plant construction. Daily payment approx 40,000 per day.

My quest is can I pass single cash entry in cash book for Rs.40,000 as labor payments.

Is it allowable expenditure under income tax?

Pls clarify?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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12 January 2011 Payment register required employee wise with Employee signature for payment received. then you can pass Cash a single Cash entry.

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2011 We are getting signatures of laborers team leaders (mastries) while making payment on a white pater. Attaching the same to voucher. Is it sufficient?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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12 January 2011 No. individual signature required and all Epmloyee will covered under EPF & ESI rule.

Team leader is not legal person

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2011 Sir, they are not our employees. Daily labour workers. Even, they will not come to work daily, it is up to their interest. That is the why we are not maintaining the register. Based on daily count of laborers, we will pay to a single person for distribution of money. He is also a labor worker.

Just we are making daily or weakly labour payments based on daily count of no. of persons. What we have to do?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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14 January 2011 You can not do like this.even single labour/staff for single days EPF & ESI covered. payment with signature must as per labour act.

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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12 June 2011 Make a muster role...take a individual labor signature and pay PF ESIC as well if applicable for IT you can make single entry in accounts but at muster role individual labor signature is must to whom each payment is less than 20000

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