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 reimbursement rate.
Regards,
Dinesh
From India, Delhi
Acknowledge(0)
Amend(0)
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 reimbursement rate.
Regards,
Dinesh
From India, Delhi
Acknowledge(0)Amend(0)
Dear Dinesh,
Actually, there is no formula for calculating conveyance allowance. If any person goes out for company purposes, they may receive payment based on kilometers traveled, such as a fixed amount per kilometer, for example, 2 Rs per kilometer or 3 Rs per kilometer. It totally depends on the company's policy.
From India, Hyderabad
Acknowledge(0)Amend(0)
8Actually, there is no formula for calculating conveyance allowance. If any person goes out for company purposes, they may receive payment based on kilometers traveled, such as a fixed amount per kilometer, for example, 2 Rs per kilometer or 3 Rs per kilometer. It totally depends on the company's policy.
From India, Hyderabad
Acknowledge(0)Amend(0)
Your accounts can help you in formulating a formula.
I am giving a broad guideline which is normally used in arriving at Reimbursement:
1. Consider petrol and oil price as Rs 70 per litre on average for the year.
2. Two-wheelers mostly give 50 kms on 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 a two-wheeler as Rs 80,000 and 10% depreciation will mean Rs 8,000 per year.
5. Let us assume that a bike is used for about 100 kms a day, which will mean approximately 2,500 kms a month for 25 days and 30,000 kms a year.
6. Divide depreciation of Rs 8,000 by usage km per year, i.e., 30,000 km. This will mean 0.27 paisa per km.
7. The total reimbursement hence is Rs 1.67 paisa per km (Fuel cost + Depreciation).
8. Some also include finance charges with an assumption that 50% will be used for personal and 50% for official purposes (Fuel cost + Depreciation + Finance charges).
Most established organizations have a very well-laid-out procedure for calculating and revising such reimbursements. This is not done without any basis.
Sivasankaran
From India, Chennai
Acknowledge(0)Amend(0)
I am giving a broad guideline which is normally used in arriving at Reimbursement:
1. Consider petrol and oil price as Rs 70 per litre on average for the year.
2. Two-wheelers mostly give 50 kms on 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 a two-wheeler as Rs 80,000 and 10% depreciation will mean Rs 8,000 per year.
5. Let us assume that a bike is used for about 100 kms a day, which will mean approximately 2,500 kms a month for 25 days and 30,000 kms a year.
6. Divide depreciation of Rs 8,000 by usage km per year, i.e., 30,000 km. This will mean 0.27 paisa per km.
7. The total reimbursement hence is Rs 1.67 paisa per km (Fuel cost + Depreciation).
8. Some also include finance charges with an assumption that 50% will be used for personal and 50% for official purposes (Fuel cost + Depreciation + Finance charges).
Most established organizations have a very well-laid-out procedure for calculating and revising such reimbursements. This is not done without any basis.
Sivasankaran
From India, Chennai
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Attrition Rate formula.pdf
Attrition-rate. xls