EXPENSES ON TOUR

4811 views 10 replies

Kumar Gaurav

Going...to be C.A soon...

1624 Points Joined June 2007

IF A EMPLOYEE GOES FOR A TOUR FOR SUPPLYING OF GOODS TO PARTIES AND THERE HE INCURRED EXPENSES ON TRAVELLING & LUNCH/DINNER/ BREAKFAST ETC. AND ON ROOM RENT THEN UNDER WHICH HEAD OF EXPENSES IT SHOULD BE SHOWING AND WHAT IS THE SUPPORTING VOUCHERS FOR THE SAME.

PLZ REPLY ME URGENTLY

THX IN ADVANCE

Replies (10)

Yallappa

CFM Assistant

37 Points Joined May 2007

if it is outstation tour then you can show as travelling expenses. this includes accomodation, food, travel. etc.

Rachana Gadage

Account Executive

136 Points Joined October 2007

I think if employee's main purpose of tour is to supply the goods to client then it will be direct expenses for company i.e. Transportation cost. If he is having any additional work in tour then it will come under Travelling Expenses i.e. indirect expenses.

CA. Dashrath Maheshwari

TaXpert

15121 Points Joined September 2007

All petty expenses during a travelling should be debited to travelling expenses and bills should be there for all expenses of more then the limit specified by the company/organization or govt. (whichever is higher)

Guest

439855 Points Joined August 2012

it should be included in travelling expenses and it consist all expenses vouchers except petty expenses. and feel free to contact on my mail Id

CA Bishnu Agarwal

Chartered Accountants

55 Points Joined September 2007

You need to account the same under respective head. like for travel ticket debit to traveling , for food debit to hospitality, for room rent debit to boarding and lodging.

If Any more clarification contact me at bishnuagarwal @ gmail.com

Joseph Alexander

CA Final Student

163 Points Joined October 2007

now there are so many answers above. which one is the right one...?

Ankit Dangayach

Chartered Accountant

691 Points Joined September 2007

For accounting Purpose We can debit such expenses in travelling expense A/c.But For correct calculation of FBT we have to Segregate expense on basic fare & expenses on lodging ,boarding ,local conveyance because value of FBT on Tour & travel is 5% while it is 20% on local conveyance ,boarding and lodging

Gurmet Siingh

Chartered Accountant

413 Points Joined September 2007

these expenses to be taken in the head Tour & Travel.It will save the FBT also for the company as it is 5% FBT on tour 7 travel but 20% on travelling exp.

Nirmal1986

articles

149 Points Joined October 2007

how the fbt can be claimed for the above case

Guest

439855 Points Joined August 2012

Does "tour & travel" includes only ticket fare or also expenses incurred by an employee on local traveling during his tour for FBT purpose ? Are the expenses incurred by the employee on local travelling during his tour included in "conveyance" or in "tour & travel" for calculation of FBT ?