Fuel Reimbursement

4076 views 3 replies

Guru Prakash

IT Manager

25 Points Posted on 07 February 2011

Hi Experts,

Im not from accounting background.

I see that many companies provide fuel reimbursement in the flexi basket. However my company finance manager says it is illegal to do so?

My queries.

1. If there is a fuel reimbursement, then what are the conditions? What are the implications for company?

2. Is travelling from home-office daily for work considered as official/personal?

I have seen many companies providing that fuel reimbursement in flexi basket with a note - if bills are not produced, then that part of salary becomes taxable. How does the accountants handle this?

Thanks,

Guru

Replies (3)

CA MAULIK

C.A

937 Points Posted on 07 February 2011

it is cosidered as personal one so .......its a nt type of allowance...and amt of exps reimbursed should be treated as salary......and charged to tax.....

Guru Prakash

IT Manager

25 Points Posted on 07 February 2011

Hi Maulik,

Thanks for your response.

Ok. Point 2 agreed. It is considered as personal.

However, what is fuel reimbursement? What are the conditiios and implications for fuel reimbursement when the vehicle is owned by the employee and used for both official as well as personal purposes? What are the records that need to be maintained?

Regards,

Guru

CA MAULIK

C.A

937 Points Posted on 08 February 2011

its called conveyance allowance......and also for that notification is already issued by income tax dept.........SEE IF U ASKED IN RELATION TO MOTORCAR........

see the link

https://www.simpletaxindia.org/2009/12/valuation-of-motor-car-perquisities-ay.html