Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

EXPENSES ON TOUR

Kumar Gaurav (Going...to be C.A soon...) (1624 Points)

09 October 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

Reply
Follow
Share

10 Replies

Yallappa (CFM Assistant) (37 Points)
Replied 09 October 2007

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

Upgrade to CAclubindia Pro. Subscribe Now!

Rachana Gadage (Account Executive) (136 Points)
Replied 09 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) (15103 Points)
Replied 09 October 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)

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)
Replied 10 October 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

Upgrade to CAclubindia Pro. Subscribe Now!

Joseph Alexander (CA Final Student) (163 Points)
Replied 16 October 2007

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

Ankit Dangayach (Chartered Accountant) (691 Points)
Replied 20 October 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)
Replied 22 October 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)
Replied 29 October 2007

how the fbt can be claimed for the above case

(Guest)

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 ?