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Whether this expenses are direct or indirect for hotel and restaurant?

Greg Miller   13 April 2020

Greg Miller

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Well, there are basically 2 types of expenses that you can deduct related to your hotel/restaurant: One is Direct Expenses and the other is Indirect Expenses.


“Direct” the word itself suggest that these expenses are completely related & assigned to the core hotel business operations. Mainly, the direct expenses are related to the purchases and production of goods/services.


When it comes to "Indirect Expenses", these expenses are paid for keeping up and running your entire hotel/restaurant.

For instance, the indirect expenses generally include insurance, utilities, and general hotel repairs. Since these are expenses you would pay for the entire hotel, these are considered indirect expenses

as per the question you have raised I’ve listed down the expenses categories in the concerned sections.

Direct: Rent paid for building, salary of housekeeping staff front office staff restaurant staff like cook chef, waiter, caption etc.


Indirect: Electric bill of hotel, telephone bills, cable connection bill for guest rooms


RAJA P M ("Do the Right Thing...!!!")     14 April 2020

"Do the Right Thing...!!!" 
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Are You asking query or giving tips/solution to others....??


Heet Shah (Tax Consultant)     09 August 2020

Heet Shah
Tax Consultant 
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Thanks for the information


Asha Kanta Sharma (Manager - Finance & Accounts)     10 August 2020

Asha Kanta Sharma
Manager - Finance & Accounts 
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You can write an article to enlighten the community on the topics of your interest/importance.

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