Factories act 1948
18. Drinking water.—(1) In every factory effective arrangements shall be made to provide and maintain at suitable points conveniently situated for all workers employed therein a sufficient supply of wholesome drinking water.
It is a direct expense because it is mandatory for production workers.
without prejudice to the provisions of clauses (d) and (e) of sub-section (1), the floors, portions of the walls and blocks so laid or finished and the sanitary pans of latrines and urinals shall be thoroughly washed and cleaned at least once in every seven days with suitable detergents or disinfectants or with both.
all such accommodation shall be maintained in a clean and sanitary condition at all times;
(e) sweepers shall be employed whose primary duty it would be to keep clean latrines, urinals and
It is an indirect to expense here because it’s for maintenance.
Any water used by staff are admin expenses.
This must be like that as the cost behaviour changes as per the act, or else you can just claim it is utilities anytime as per my opinion.