14 March 2009
My client in mumbai, is having a branch in delhi who has hired some employees in delhi. the sales representative in dekhi works for the company in a hired car. the branch gives to the employee a fixed rate of 5 rupees per km. then the head office reimburses the branch for the amount spent.
in which head should the exp be accounted for fringe benefit, Conveyance or Travelling?
16 March 2009
i am aware that there are two seperate heads now. i.e conveyance and Tour and travelling. but my query is why will it go to conveyance and not travelling?
16 March 2009
Generally, the expenses incurred for travelling within the city are treated as Conveyance. In your case also, it is reimbursement for local travelling. In Tour and Travelling expenses we generally take Travelling out of city.
CAclubindia
