Uniform expenses nature head

Dear all,

Can any body informe me if office provides uniform to his employees then what is the nature head of this expenses. Is it capital nature or revenue. If it is capital nature then what is the depreciation rate as per income tax and co's act?

Please inform me at siddhartha @ oneshelp.com

Looking forward for your kind reply.

Replies (3)
Quick Summary
Employee uniform expense is treated as staff welfare and is revenue in nature, not capital. No depreciation applies. Stock tracking can be maintained for control, but cost is charged to profit and loss.

If uniform is provided to employees,then this expense should be booked in staff welfare haed.It is a revenue expenditure and not a capital expenditure.However FBT will be attracted on this expense.

If uniform is provided to employees,then this expense should be booked in staff welfare haed.It is a revenue expenditure and not a capital expenditure.However FBT will be attracted on this expense.

Dear Jyoti,

Thank you very much for your reply. I have another query regarding this topic.

Our company have been maintaining stock against the dress code which he provides to his employees. As per my knowledge stock should be maintained against fixed assets. If I am wrong please clarify me regarding this and if it is treated as fixed assets then what is the depreciation rate against this assets? I can't find any fixed asstests block to put this expenses.

Looking forward for your kind co-operation and thanking you again.

With Regards,
Siddhartha Kar 

 

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