Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Canteen raw material, utilities and gas as per factories act

AS 230 views 1 replies

Yasaswi Gomes new

Finance

4545 Points Joined September 2020

Is gas, raw materials like vegetables and rice, utensils a direct cost as per factories act. The company is planning to open a new canteen and provide food for free to workers only and no B2C sales even for customers and visitors who visit the plant. This canteen will be located within the factory premises juxtapose to factory itself.

Txs

Replies (1)

Nikita Agarwal

Semi Qualified CA

3208 Points Joined July 2022

Regarding your question about direct costs, the Factories Act doesn't specifically mention accounting terms such as direct costs. Instead, it focuses on the welfare and well-being of workers.the provision of free food to workers in the canteen might be treated as a perquisite or a fringe benefit provided by the employer.