Hi all,
We do not have a breakdown in salary (like HRA, travel, etc.). Straight TDS or PT is deducted. Now, travel expenses are added for the marketing professionals in addition to their salary. My query is: should I add the travel expense to their salary and then deduct TDS or PT, or should I add the expense to the deducted salary?
Kindly suggest.
Thanks.
From India, Mumbai
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We do not have a breakdown in salary (like HRA, travel, etc.). Straight TDS or PT is deducted. Now, travel expenses are added for the marketing professionals in addition to their salary. My query is: should I add the travel expense to their salary and then deduct TDS or PT, or should I add the expense to the deducted salary?
Kindly suggest.
Thanks.
From India, Mumbai
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Understanding Travel Expenses in Employee Salary
To my understanding, travel expenses for regular traveling on sales/marketing visits do not form part of the salary of an employee. These are expenses incurred by the company on account of travel, boarding & lodging, and miscellaneous expenses for trips undertaken by its employees outside the municipal limits of the workplace. These expenses may range from same-day returns to trips lasting a number of days. They can be based on actual expenses or flat allowances per day as per the travel policy of the company.
Such expenses are usually accounted for in the company's expense account under respective heads and ledger once the tour vouchers are paid.
From India, Hyderabad
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To my understanding, travel expenses for regular traveling on sales/marketing visits do not form part of the salary of an employee. These are expenses incurred by the company on account of travel, boarding & lodging, and miscellaneous expenses for trips undertaken by its employees outside the municipal limits of the workplace. These expenses may range from same-day returns to trips lasting a number of days. They can be based on actual expenses or flat allowances per day as per the travel policy of the company.
Such expenses are usually accounted for in the company's expense account under respective heads and ledger once the tour vouchers are paid.
From India, Hyderabad
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I assume that what you mean to say is that you are paying the marketing expenses and travel reimbursement in the same bank transfer or check that is given for the salary of the concerned employee. What you need to do is to separate the reimbursement of travel expenses from the rest of the salary. In your internal workings, compute the salary and the TDS. Thereafter, separately add the reimbursement to the total and transfer it to the bank account. It would also be a good idea for you to show it in the same manner on the salary slip.
From India, Mumbai
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2508From India, Mumbai
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