Dear All,
can anyone tell me how to calculate company vehicle per kilometer maintenance cost. (we want to make car/bike maintenance part of salary instead of reimbursing on actuals).
Also how to do working of adding a benefit in salary rather of reimbursement mean how to show that working of 2 -3 employees involved in process of reimbursement is more expensive then if that benefit is included in the salary or vice versa.
regards,
wajiha
From Pakistan
1can anyone tell me how to calculate company vehicle per kilometer maintenance cost. (we want to make car/bike maintenance part of salary instead of reimbursing on actuals).
Also how to do working of adding a benefit in salary rather of reimbursement mean how to show that working of 2 -3 employees involved in process of reimbursement is more expensive then if that benefit is included in the salary or vice versa.
regards,
wajiha
From Pakistan
for every km run just c the mileage of fuel, then the monthly maintence bill on avg. from authorised show room ,u then work out for month.that its it.!!!
From India, Tiruchchirappalli
From India, Tiruchchirappalli
Dear Wahija,
In what sort of industry do you work and what is your role? Do you have an accounts or finance department? What do you mean by maintenance cost? Dors company vehicle mean one that is given to a staff member to keep as long as (s)he works for the company. Do you have figures of what you have reimbursed for different people over the past year?
Paying based on average spent last year would be accetable to the TAX authorities? Would people still have to keep a log of milage covered, etc?
Thus you can see a lot of questions need answering before one can give definitive answer. I think an accountant would be the best person to answer your query.
Have a nice day.
Simhan
A retired academi in the UK.
<link outdated-removed> ( Search On Cite | Search On Google )
From United Kingdom
In what sort of industry do you work and what is your role? Do you have an accounts or finance department? What do you mean by maintenance cost? Dors company vehicle mean one that is given to a staff member to keep as long as (s)he works for the company. Do you have figures of what you have reimbursed for different people over the past year?
Paying based on average spent last year would be accetable to the TAX authorities? Would people still have to keep a log of milage covered, etc?
Thus you can see a lot of questions need answering before one can give definitive answer. I think an accountant would be the best person to answer your query.
Have a nice day.
Simhan
A retired academi in the UK.
<link outdated-removed> ( Search On Cite | Search On Google )
From United Kingdom
First issue the log book to who are all using the vehicle and mention the daily Traveling kms in the log book. At the month first collect the log book from the employs and calculate the total kms Ex: Total Km 1000 per month if the vehicle consumption is 14Km per Ltr, 1000/14*petrol / Diesel Rate. At the time you gate the picture
From India, Bangalore
From India, Bangalore
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.
From India, Bangalore
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.
From India, Bangalore
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