Skip to content

CS Professional · Labour Laws and Practice · Law of Wages

Deepak Engineering supplies its fitter Imran with a company flat and also supplies him tools and raw materials needed for his job. The employer proposes to deduct for the flat, for the tools and for the raw materials. Which view is correct under the Code?

Only the house-accommodation deduction is permitted. The Code lists housing supplied by the employer as an authorised deduction, while its Explanation excludes the supply of tools and raw materials required for employment from the meaning of services.

  1. ADeduction is allowed for the flat only (housing supplied by the employer); the supply of tools and raw materials is not within the 'services' for which deduction is allowedCorrect
  2. BDeduction is allowed for all three as amenities and services
  3. CDeduction is allowed for tools and raw materials only, not for housing
  4. DNo deduction is allowed for any of them

Explanation

Deduction for house-accommodation supplied by the employer is an authorised purpose. For amenities and services deductions, the Explanation says 'services' does not include supply of tools and raw materials required for employment. So the tools and raw materials deduction fails.

Did you get it right without looking?

One question tells you little. A timed set on Law of Wages shows your real accuracy, how long you take and where you lose marks.

Practise Law of WagesFree diagnostic mock

More Law of Wages questions