Cleaning charges collected during banquet

AS 566 views 1 replies

Dear Expert Members,

In case of hotel banquet functions, they collect the "cleaning charges" to clear the Garbage or carpet etc in some cases and not as a standard in all cases. Whether this collection can be set off against Transportation/Cleaning expenses as it is recovery of cost and no service rendered.

Query : Whether recovery can be set of against expenses or to show it as Other receipts/income and charge taxes on that.

 

Please update with your views.

 

Regards.

Nagappa.

Replies (1)
In this case 
the amount charged by hotel banquet functions i. e.  "cleaning charges" should be  set off against Transportation/Cleaning expenses as it is recovery of cost and no service rendered. Further if cleaning charges recovered is more than against expenses than excess amount shold be shown as other income or receipt.


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