Purchases

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can purchases of electrical items and house keeping items be charged to purchases under hotel company??

Replies (2)

Housekeeping items can be treated as purchases , but electical items may not be treated as purchases.

Normally, material used for providing the end service is charged as purchases. Like, in manufacturing company , for recognising as purchases , there should be relationship between material and end product.



Anoop as u have said that it should have relationship with end product which is a gr8 pnt

so as hotel indus work is to give services to the customer and electrical equip like AC is a kind of service only

And one more point recently there was a news of govt charging service tax on AC ROOMS so from that point of view  also Electrical items also be shown as purchases as service tax is  charged  on services only.

 

its my interpretation please correct me if i am wrong

 


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