Dear Friends,
I want to know how to calculate the local conveyance reimbursement rate (per KM) for 2-wheelers and 4-wheelers as the petrol prices keep fluctuating? I would appreciate if anyone could share their policy, and formula for calculating the reimbusement rate.
Regards,
Dinesh
From India, Delhi
I want to know how to calculate the local conveyance reimbursement rate (per KM) for 2-wheelers and 4-wheelers as the petrol prices keep fluctuating? I would appreciate if anyone could share their policy, and formula for calculating the reimbusement rate.
Regards,
Dinesh
From India, Delhi
dear dinesh.
Actually there is no formula for calculating conveyance allowance. if any person gone out for company purpose he may get payment by kms means some fixed amount per kilometer EX: 2 rs / 1 km or 3 rs/ 1km like that. Its totally depends upon company policy.
From India, Solon
7Actually there is no formula for calculating conveyance allowance. if any person gone out for company purpose he may get payment by kms means some fixed amount per kilometer EX: 2 rs / 1 km or 3 rs/ 1km like that. Its totally depends upon company policy.
From India, Solon
Your accounts can help you in formulating a formula
I am giving a broad guideleine which is normally used in arriving at Reimbursement
1. Consider petrol and oil price as Rs 70 per litre as average for the year
2. Two whellers mostly give 50 kms on an average per litre of fuel( It could be more or less and this is just an example)
3. Hence Fuel expenses will be Rs 1.40/ per km usage
4. Assume the cost of two wheller as Rs 80000/ and 10% depreciation will mean Rs 8000 per year
5.Let us assume that a bike is used for about 100 kms a day and this will mean approximately 2500 kms a month for 25 days and 30000 kms a year.
6.Divide depreciation of Rs 8000 by usage km by year ie 30000 km This will mean 0.27 paise per km
7. The total reimbursement hence is Rs 1.67 paise per km( Fuel cost + Depreciation)
8. Some also include finance charges with an assumption that 50% will be used for personal and 50% will be used for official purpose( Fuesl cost + Depreciation + Finance charges)
Most of the established organisations have very well laid out procedure for calculating and revising such reimbursements. This is not done without any basis.
Sivasankaran
From India, Chennai
I am giving a broad guideleine which is normally used in arriving at Reimbursement
1. Consider petrol and oil price as Rs 70 per litre as average for the year
2. Two whellers mostly give 50 kms on an average per litre of fuel( It could be more or less and this is just an example)
3. Hence Fuel expenses will be Rs 1.40/ per km usage
4. Assume the cost of two wheller as Rs 80000/ and 10% depreciation will mean Rs 8000 per year
5.Let us assume that a bike is used for about 100 kms a day and this will mean approximately 2500 kms a month for 25 days and 30000 kms a year.
6.Divide depreciation of Rs 8000 by usage km by year ie 30000 km This will mean 0.27 paise per km
7. The total reimbursement hence is Rs 1.67 paise per km( Fuel cost + Depreciation)
8. Some also include finance charges with an assumption that 50% will be used for personal and 50% will be used for official purpose( Fuesl cost + Depreciation + Finance charges)
Most of the established organisations have very well laid out procedure for calculating and revising such reimbursements. This is not done without any basis.
Sivasankaran
From India, Chennai
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