Reimbursement

Dear all,

What are the documents the employer has to maintain as per income tax rules , for reimbursing the fuel expenses / drivers salary paid by the employee for the car provided by the employer , which is used wholly for official purpose.

Pl. help me for clarification of above doubt, which is required for my acdemic knowledge.  (Rule 3 is not clear about this.

regards

MSN

 

Replies (1)

For the fuel exp, ask the employees to produce the petrol bills if the petrol is filled other than the place wehre the co maintians the account with the petrol dealer whihc should suffice as an documentary evidence.  If the co maintains an account with the petrol co, then the car no wud get reflected in the monthly statement provided by the petrol dealer whihc would serve as an evidence. For the drivers salary paid maintain vouchers by taking the signature of the driver on it after pymt of the salary.  If salary is paid through cheque that would be an additional evidence, provided the driver has an bank account.  else you can also give bearer cheque to the driver.

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