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URGENT FBT ON CONVEYANCE

Navita (profession) (96 Points)

16 November 2007

T.A. D.A. paid to sales staff other than salary will be covered under conveyance or travelling.the reimbursemmnet includes fixed allowance on the basis of position as well as payment on the basis of kms.

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3 Replies

GARGS (CA) (74 Points)
Replied 16 November 2007

All the travelling exp. paid to sales staff for performance of duties is covered under coveynance allowance (provided free conveyance is not provided separately). However treatment of fixed and variable is not given in the law Therefore you can treat whole of such exp. as conveyance Thanks, taxsolution @ againstthelaw.co.in

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Navita (profession) (96 Points)
Replied 16 November 2007

so how can we bifurcate between the onveyance or travelling

MAHENDRA IYER (SERVICE) (315 Points)
Replied 16 November 2007

One needs to ascertain for what the allowances are given. If it is for local travel then it is to be classified as conveyance and if it is for outstation travel then it is to be classified a travelling.