Can 'Mobile Ph Allowance' Be A Part Of CTC - CiteHR
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Even if you have fixed allowances to meet expenses for train journey or to meet expenses for stay in a hotel when on official tour, such expenses should not be treated as part of the CTC. These are expenses an employee incurs when he goes on tour for official work and should be so treated as Reimbursements.
The limits for travel etc..are designed and defined for budgetary purposes and to limit expenses on official tours.
You may wish to advise your management accordingly to maybe revise the Policy of Official Travel and Outstation Visits for official work.
Vasant Nair

Dear Friend,
CTC means cost to the company i.e., the compensation in different components payable to its employee for hiring his services. It varies from company to other.
The reimbursement of phone bill to a fixed amount can be treated as part of CTC.
Normally the following will be part of CTC.
BASIC SALARY,
HRA,
CONVEYANCE,
LTC,
BONUS,
SPECIAL ALLOWANCES LIKE, BOOKS AND PERIODICALS, DRIVER ALLOWANCE, PETROL EXPENSES,
MEDICAL REIMBURSEMENTS.
Apart from the above, statutory contributions like
Provident Fund, Gratuity
Hope this clarifies
Regards

Hi Robin,
It is to be decided at sole discretion of the organisation.
But when it comes ctc, the organisation can cover other allowances other than statutory.
So it can be considered as a part of CTC.
Ashish

Hi Mr Raj Kumar ,

Well thanks for the advise , but I feel my top management knows what is better for their Employees.
And Secondly as i think that you are much more experienced than me , but still I feel you should keep your advise among yourself.
Our HR HEAD and VP HR knows better than you and Trust me I know it completely.
To say that what is legal or illegal is not right as far as I believe.
I assume that your point of opinion is coming from one industry , But as I work in a IT company we don't have Sales Manager/Regional Manager ( I think You have in your Company) we have a Client Acquisition team which handles the Business development of our Company.
And as I told earlier we have maintained certain parameters/Limits to curb the misuse of this inclusion.
And I don't think our employees are dumb enough to work in a Company where the CTC is not upto the mark.

We dint join this forum to criticize each other company ( Mine is One of the Best known IT product MNC
- That goes to specifically to Mr Raj Kumar ) but to share knowledge.
I had told my opinion , people can always argue with a better solution , But I am sure they don't have any right to say " What is legal or Illegal "
I just advised Robin , what I thought was correct according to my knowledge.


To my other friend -

I also know that a person gets Gratuity only after 5 years but if you have the patience of reading my post , then I just told that some Company use it to Inflate their CTC.

To All my friends and Specially Mr Raj Kumar -

Although I don't think that I should give any Explanation but still I feel I should make my stand clear and precise.
As " hiashuhrm " rightfully said that Formulating CTC totally depends upon that company , but when it comes to our company we Include it as because our CTC is much more higher as compared to our Industry peers .

To quote an example -
If Company - ABC has a CTC of 500000 PA in place for their Business Analyst we as XYZ has a CTC of 650000 pa for the same profile.
So basically it means that the Employee is well aware of the inclusion of expenses in CTC as he knows after deduction still he is getting more than his peers.

Hope now all my friends have got the picture clearly.
And Mr Raj Kumar - kindly please check your words before commenting something
Being a HR ( I assume you are ) one should be more careful with their words.

With Regards ,
Sarkar

We have mobile reimbursement for employees as per entitlement defined as per the grade of the employees. The personal calls amount has to be deducted by the employee while claiming the reimbursement.

Rajkumar ji, you have a very vast experience of this field and very well explained by you. Thanks & regards, shish ram uniyal compliance consultant 096811681660
Mr.sarkar,
you are totally wrong at your part. Mr rajkumar ji not only experience of one industry but all type of industries shop & estb., factories, it etc.
Whatever you company it is never been matter of us but we guide others so that they can not do this kind of mistakes in their ctc as you are doing, it is specially not for you but for all others who is new to this forum.
Shish ram uniyal

My dear Sarkar



Thanks for your reply; which very nicely reflects your opinion and attitude.



Kindly go through my earlier post again. The example quoted therein are just examples to make the concept easy to understand and not taken from my or any other specific company.

The Sales/Marketing example was taken, as they are mostly on tour/travel. However, all these travel expenses (which are undertaken for company business) do not form a part of CTC; as these do not go in the pocket of the employee - lijke in the case of LTA/LTC; but are merely reimbursement of expenses incurred for company work.

The facts quoted therein are facts, that can be verified with any knowledgeable person or an expert like a good CA/CS or even the knowledgeable HEAD and VP - HR of your esteemed company.



I am sure you have not referred the matter to them, else they would have told you what is right.



The fact remains that :
The expenses incurred by any employee in connection with company business/work such as Official tours (including travel, boarding & lodging, incidental expenses in connection with the work); are never a part of CTC.

Please try to understand what CTC (Cost to Company) means and what it includes.



If still you have any doubts on this, you should clarify it from your own seniors. I do not think a senior person who understands these aspects would have a different opinion.



We are here, definitely, to share knowledge, and that is why my emphasis on facts, and legalities.



Do think again on this without getting unduly charged up in anger !!

Declaring the questionable policies of your company, the supposed concurrence of your HEAD/VP-HR and your salary information in a public forum, is not proper, you could land in problem if words get back to your organization.



Warm regards.








Mr. Sarkar,

Mr. Raj Kumar has placed his view i a very scientific manner for treating the expenses and employee benefits in the light of the exiting law and standard accounting practices, as laid down by the Companies Act, as a well as by the Institute of Chartered Accountants of India (established by a law of parliament). No company is allowed to do the things which are not permitted by law.

If your Company Secretary o the Chartered Accountants are not looking into this and are depicting the expenses and benefits into inappropriate head of accounts, they are not depicting true and fair view of accounts.

Mr. Raj Kumar has quoted various Accounting Standards, which guide the Industry as well as auditors as to how the financial entries/transactions need to be treated in the books of accounts.

Mr. Raj Kumar has rendered a good piece of advise to refer to your Finance Department for further clarification. You seems to be a non finance person, and you have unnecessary gone furious about the advise given be Mr. Raj Kumar.

Ramalingam Raju had a formidable Satyam. But see what he was doing. I am not suggesting that your company bosses are doing the same, but may be they are ignorant or misled. If your company do not mend, it could be in trouble some day.

I assume that your company, in a grab to show the best pay master in the industry are wrapping inappropriate amounts in the CTC (as is evident from the example of CTC given by you in your post).

But beware, the actual salary is that, what an employees carries home and gets as perks or long term deposits, like PF, etc. Rest all are the business expenses of the company attributed to employees inappropriately.

My Dear Friend,

You aggressive response to the explanation of the issue posted by Raj has made me sit up!!!!

I can only say that you have been extremely childish and uncharitable in actually rebuking someone senior and knowledgeable as Raj.

You should actually thank him for the fine details that he as posted on the matter under discussion.


This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™