Dear Wahija,
I presume the follg.circumstances in yr.case:
1. Yr.co. provides 2 wheelers and 4 wheelers to yr.staff for commuting on co's matters no separate drivers).
2. Co. try to avoid paying the petrol or diesel bills as reimbursement to those staff for these trips undertaken by them for co.affairs.
3. Repair/replacement cost will be met by co.
If so, my opinion/suggestions are-
1. Fix mileage per vehicle/per lt.of petrol or diesel after considering individually the model/year, condition of the vehicle, city road/traffic conditions (you may obtain the opinion of a popular Auto workshop/service garage/shop for yr.records. Keep this as a thumbrule for paying the mileage allw. for co. trips.
2. All the staff who are provided these vehicles should maintain a register on daily basis recording therein trip wise information - such as - from office to customer's place - kms.travelled onward say 10 kms., return 10 kms. Likewise each and every trip should be recorded under various columns. Total up the kms.travelled either every week end, say monday to friday or from date 1st to 15th or 1st to 31st. Thus total mileage travelled say 100 kms.
And if two wheeler, it gives 35 kms./per ltr.of petrol. So 100 kms. divided by 35 kms. = 2.86 ltr. Then 2.86 x Rs.65/per ltr.of petrol = Rs.185.90, say Rs.186/- pay individually thro Vr.
3.By this method you will also help to avoid income tax problem (if you pay conveyance allw. it will be taxable as per IT formula)
Alternatively, if U don't follow these procedures simplify by just obtaining a claim from them certified by their HOD saying ....so and so has covered ....kms. during the month for official duties and at a mileage allw @ Rs.5/- per km. pay him the money thro' individual Vrs (rate per km has to be decided by U).
Paying thro' Salary bill will attract IT. But if U want to jack up the CTC then calculate a monthly allw. based on the projected kms. one has to travel in a month and fix up monthly allw., pay thro' salary bill. But repairs & maintenance, running cost exceeding the expected kms. to cover have to be answered.
Consider various options and adopt what is best suited to you.
Kumar,Bg.