Deduction on the behalf of voucher

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2015 Dear experts,
I am engaged in marketing business and i am giving petrol exp. to sales executive @ 1 per km, however sales executive not give me petrol acknowledgment for the same plz tell me can i take deduction in income tax on voucher signing by sales executive on petrol exp. given to sales executive @ 1 per km,

Regard
Vishal Gupta

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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17 October 2015 ask him for the petrol bills na...

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2015 Sir, i have already asked them for petrol bill but they doesn't collect it from petrol pump, therefore i have decided to sing the voucher by sales executive on payment made for petrol. Plz guide me can i do so and will it be accepted by income tax department..

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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17 October 2015 if you have the contract with him in which it has been written tht u wil pay him rs 1 and all.. then it will be allowed as per contract...!!

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2015 Dear sir, yes it is contract rs. 1 per km. But not made any contract deed, plz confirm will it be accepted only voucher signing by payment receiver, without deed

Amol S Joglekar

Amol S Joglekar (Expert)
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17 October 2015 yes, it can be very well allowed....Subject to however, as always, reasonableness of expenses.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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17 October 2015 Sir without any contract, No bills... How such expenses will b allowed... Reasonableness comes with an contract or an supporting.. only an voucher cant make an expenses reasonable in mah personal view...

Waiting for your views regarding this sir

Amol S Joglekar

Amol S Joglekar (Expert)
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17 October 2015 Voucher itself amounts to SELF declaration. Needless to say, the person to whom one rupee a kilometer is given is the EMPLOYEE (may be permanent or contract) of the marketing business person. That means the contract is already on record as to employer and employee.

One rupee a kilometer suggests that the person is using a vehicle having an average per litre of petrol of around 60 to 65 kilometers, which is a common average of most of the 2 wheelers in India... Hence the reasonableness of the expenditure is warranted.

Now how much a person can travel per day AND that too on day on day basis.... This shall be another test of reasonableness. While in a city like Mumbai where 2 wheeler ride is not much justified but in cities like Pune, Indore, Bhopal, Bengaluru, Chennai and so on... 50 kilometers a day is quite a reasonable distance of travelling.

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