Staff mess expenses

This query is : Resolved

Share Report Follow Query Ask a Query

student

student (Querist)
Follow

11 September 2016 Can I take staff mess expenses as indirect expenses for a firm?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

25 July 2025 Hey! Yes, **staff mess expenses** can generally be treated as **indirect expenses** in your firm’s books. Here’s why and how:

---

### Why classify staff mess expenses as indirect expenses?

* **Indirect Expense Nature:**
Staff mess expenses are not directly linked to production or sales but support the overall functioning of the organization — so they fit under indirect expenses.

* **Part of Employee Welfare/Benefits:**
Providing meals to employees is often considered a welfare measure, classified under employee welfare or staff welfare expenses, which are indirect costs.

* **Common Accounting Practice:**
Most businesses record staff mess expenses as an overhead or indirect expense.

---

### How to treat staff mess expenses?

* **Accounting Treatment:**
Typically, these expenses are debited to accounts like:

* Staff Welfare Expenses
* Employee Welfare Expenses
* Indirect Expenses — Staff Mess

* They get aggregated with other indirect expenses for cost and profitability analysis.

---

### Tax & compliance considerations:

* In some tax jurisdictions, staff welfare expenses including mess expenses can be deductible for income tax purposes.
* Also, if the firm provides subsidized or free meals, there may be implications for employee benefits tax or perquisites — so keep that in mind.

---

### Summary:

| Treatment | Details |
| --------------- | --------------------------------------------------- |
| Expense Type | Indirect Expense |
| Accounting Head | Staff Welfare / Employee Welfare / Indirect Expense |
| Purpose | Employee welfare / support expense |

---

If you want, I can help you draft journal entries or suggest how to present this in financial statements. Need that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rubal Singhal

Ravi Varshney

Shivchandra Jakhotia

DHANASHRI KARMARKAR

Sneh Choraria

Subscribe Now

Staff mess expenses

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

GST CONSULTANT

Accountant

CA Final

Senior Executive

Manager- Finance and Compliance