Please furnish your clarification on the following issue: One of our Regional Sales Manager has appointed a Personal Driver to drive his Car for his field work and the Driver has been paid salary/wages by this RSM and in turn the RSM will claim Reimbursement in his second fortnightly expenses bill under the head 'business development expenses". My question is How this salary paid to Personal Driver by the Regional Sales Manager can be accounted by the Company. Or else, under what head of account this Regional sales manager should pay salary/wages to his personal driver. Further is there any chance for this driver to claim employment under Company rolls if he is continued to work as Personal Driver.
21st May 2018 From India, Bangalore
The Regional Sales Manager can claim reimbursement of his own personal driver's wages. This can not be accounted in business promotion expenses, as this is not allowed expenses now a days. This will form a part of his perks to the Manager,and is taxable.
Further engagement of Driver for a Manager's car should be personal, and no nexus between the company and the Driver should be established. I had a bitter experience, that one my Mangers, who had engaged a driver on his own payment of monthly wages, used to send the company car for fuel filling, and the Driver used to take a photo copy of the bill in name of the company car, and had been keeping it. Similarly, when the car was send for servicing he used to sign the bill / out gate pass, and was holding that copy also.
On fine morning after 5 years of service, the Manager, fired him for some misconduct. The Driver preferred an application before the Labour officer, for reinstatement with back wages, was pleading he was working directly by the company. Though however with difficulty his claim was dismissed subsequently. Allow him inside the factory as third party driver / visitor.
21st May 2018 From India, Madras
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