IndigoLearn

Rtp nov20

In the rtp nov20 , question why do we take the employer's contribution as earnings ? Such contributions is to be treated as cost rite and not earnings since that is not received be the employee rite .

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

11-Nov-20 11:20

29

Answers (6)

For an employee these are earnings and for the company these are cost elements


Sriram Somayajula

Sriram Somayajula

Admin

11-Nov-20 12:06

Then in illustration 3 of the institute's textbook, why is the employer contribution not added ?

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Swathi Krishna

Swathi Krishna

CA Inter

7K+

11-Nov-20 12:09

In this illustration employee's contribution is deducted which is understandable, but then why is empolyer's contribution not added ?


Swathi Krishna

Swathi Krishna

CA Inter

7K+

11-Nov-20 12:10

In this illustration employee's contribution is deducted which is understandable, but then why is empolyer's contribution not added ?

In this the computation is made only to show what an employees net wages are. it is not used for any other computation


Sriram Somayajula

Sriram Somayajula

Admin

11-Nov-20 12:35