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jvramakrishna356
4

Dear Sirs,
Please find the recent judgment of Hon'ble High court of Andhra Pradesh holding that ESI contributions need not be paid on conveyance allowance.
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Thanks & Regards,

C. NIRANJAN RAO

Advocate
HIG-II, BLOCK NO.22, FLAT NO.8,
BAGH LINGAMPALLY, HYDERABAD.
PH: 040 66827291 (O) 9848050875 (M)
Email:
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From India, Hyderabad
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White Eagle
22

Hi Niranjan,
I think as per Section 2(9) and under Section 2(22) of the ESI Act, conveyance allowance was excluded from the definition of wage so it was not part of ESI contribution...Correct me if I am wrong...

From India, Hyderabad
swastik73
45

Dear Jkhr, If the Conveyance Allowance is directly related to expenditure incurred in travelling then ESI is not payable otherwise ESI is payable. Regards, SC
From India, Thane
Madhu.T.K
4193

Page No 7 has been repeated and page No. 8, presumably the page in which the Order is passed is not available. Please check and send it again.
There is difference between Travelling Allowance and Conveyance Allowance. The former is paid at a fixed rate depending upon the kilometer traveled or class in which the journey was undertaken. Let it be from the residence to office and back or for any official visit. At the same time, conveyance allowance is a fixed sum. If we say that it is a payment made to employees to commute from and to residence, it can not be uniform since all employees of a particular scale of pay need not reside at the same place and all incur the same amount. That means it is a part of salary only.
The above stated is my perception about it. There may be difference of opinion.
Regards,
Madhu.T.K

From India, Kannur
swastik73
45

Dear All, Mr. Madhu is absolutely right. All Allowances are part of Salary, while all expenses which are reimbursed are not. Regards, SC
From India, Thane
rajusiachen
22

Dear All,
In the Government, every Defence officers get Rs 800 per month as Conveyance Allow. The only conditions are that the reside atleast 1 km away from the office and they do not use a Govt vehicle to commute from home to office and back once in a day! This Rs 800 is uniform for all officer's rank - from Lt to General.
Rajusiachen

From India, Coimbatore
Madhu.T.K
4193

That is the case with Govt. service also. But the same can not be applied here in the case of ESI or EPF which stands for private establishments. If we take the same here also, I think that the conveyance allowance so paid will become part of salary since it is included in the terms of service. In other words, any amount arising out of a settlement will be presumed to be part of remuneration payable to the person on whom the settlement is binding.
Regards,
Madhu.T.K

From India, Kannur
sumitk.saxena
252

Dear all,
Going through the two judgement it was noted that there is difference between conveyance allowances & travelling allowances, if conveyance is fixed then it will be a part of salary but if it was claim then it should not be a part or salary but it should become reimbusement esic should be deduct on fixed allowanc not on reimbursement.
thanks & regards,
from,
sumit kumar saxena

From India, Ghaziabad
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