Taxable allowances

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Gurwinder Singh (Querist)
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18 April 2017 I am working in a manufacturing private limited co.
our company has 2 salesmen
we proved conveyance charges to salesmen to visit shops, dealer, retailers to supply our products

my question is
conveyance charges is exempted or taxable
amount of conveyance charges is 9500 to 10000 per month

kindly help me

ND (Expert)
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18 April 2017 Conveyance charges are taxable if paid as part of salary. Transport allowance is exempt up to Rs.1600 p.m. However conveyance expenses reimbursed are not taxable provided these have been incurred wholly and exclusively for the purpose of business and fully supported with the bills. There is no maximum or minimum limit for these charges.

Gurwinder Singh

Gurwinder Singh (Querist)
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18 April 2017 Thanks u so much sir for ur valuable advice
sir i m still in doubt that
our salesmen incurred these exp wholly for the purpose of business only. but they dont have any proof because they have to use auto, rikshaw , private buses, so they dont get any bills for the same.
kindly guide me

ND (Expert)
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18 April 2017 They can prepare one excel sheet wherein they can mention the places visited by them and against each place the mode and amount of conveyance can be stated.

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Gurwinder Singh

Gurwinder Singh (Querist)
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18 April 2017 sir they prepared that sheet on monthly basis where they show
date, day, from, to, amount, mode of traveling & total.

so i they prepare that sheet as suggested by you then
can we pay these conveyance charges by cheque?
after preparing this sheet on monthly basis whether this is taxable or exempted ?

kindly help sir

ND (Expert)
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18 April 2017 yes, it can be paid by cheque and will not be taxable in that case

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Gurwinder Singh

Gurwinder Singh (Querist)
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27 April 2017 OK SIR THANK YOU SO MUCH SIR,
SIR AS I AM MAKING PAYMENT BY CHEQUE , WHICH ACCOUNT I SHOULD DEBIT ( SALARY & WAGES ACCOUNT OR CONVEYANCE ACCOUNT )

Gurwinder Singh

Gurwinder Singh (Querist)
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27 April 2017 OK SIR THANK YOU SO MUCH SIR,
SIR AS I AM MAKING PAYMENT BY CHEQUE , WHICH ACCOUNT I SHOULD DEBIT ( SALARY & WAGES ACCOUNT OR CONVEYANCE ACCOUNT )