Question

Canteen expenses for factory workers are part of

Answer 1

Answer:

 for canteen services provided by a company are taxable as a supply of service under GST

hope it helps you

Answer 2

The company is under duty to provide canteen facilities to the employees. Such a facility comes under employment contracts and be a part of the cost to the company ( C2C).  

Explanation:

According to Section 46, any factory with more than 250 employees is supposed give canteen facilities to its workers. The following activities were included in the detailed work:

• The Company provides room for the canteen within the plant grounds.

• The cook is a Company employee who is being paid a monthly pay.

• The Company purchases the vegetables and other goods needed to prepare the food straight from the suppliers.

• The number of times each day that employees use the Canteen facility is monitored on a daily basis.

• Based on the information provided above, the Company recovers the cost of vegetables and other things required for food preparation from the employees as a deduction from their monthly wage in proportion to the foods consumed.

• While recovering the cost of the food items from the employees, the company makes no profit. The employees are only reimbursed for the real cost of the food products.
• The company is under duty to provide canteen facilities to the employees. Such a facility comes under employment contracts and be a part of the cost to the company ( C2C).  

Such activity, according to the company, does not fall within the scope of 'supply' because it is not in the course and scope of its business. The business was just assisting in the provision of food to employees, which was a legal necessity and was just reimbursing the real expenses incurred in connection with the food supply, with no profit.