Our expenditure is wage or Labour charge

Alok (Querist) 27 July 2017 This query is : Resolved
Sir/Madam.we pay handling charges @per bag to a group of workers for agricultural produce being purchased in market yard, rate of payment i s Decided by Labour union , Amc and traders , payment amount may be some day 20000 or more , and some day nothing , now how this payment will be treated weather wage or Labour charge

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Ms.Usha Kapoor (Expert) 28 July 2017
It can be treated as labor charge

krishna mohan (Expert) 28 July 2017
If you engage through a contractor it is contractor fee and it is for the contractor to ensure minimum wages of as fixed by Government. If you engage individually it can be termed as wages if you employ like a organized factory. Formalize in writing if the requirement is continuous.