Dear cite Hr Friends,
I have a doubt,If Someone can pls clarify,
Is the conveyance Allowance paid to employees falls under statutory compliance as social welfare measure or it forms a part of company policy as compensation given to employees for travelling across for work purpose.If it falls under statutory norms kindly provide some reference in this respect pls.
Thanks
Bijay
From India, Vadodara
366I have a doubt,If Someone can pls clarify,
Is the conveyance Allowance paid to employees falls under statutory compliance as social welfare measure or it forms a part of company policy as compensation given to employees for travelling across for work purpose.If it falls under statutory norms kindly provide some reference in this respect pls.
Thanks
Bijay
From India, Vadodara
Dear Bijay ji,
There is no law in India by which you are compelled to pay any allowance to your employee except HRA Act in some States.
Companies do pay various allowances including conv, edu, medical, LTA, CCA, washing allw etc. to its employees as per policy of company and not as per any law. Certain allowances paid are eligible to get exemption / deduction under Income Tax law.
From India, Mumbai
There is no law in India by which you are compelled to pay any allowance to your employee except HRA Act in some States.
Companies do pay various allowances including conv, edu, medical, LTA, CCA, washing allw etc. to its employees as per policy of company and not as per any law. Certain allowances paid are eligible to get exemption / deduction under Income Tax law.
From India, Mumbai
Dear Sir,
Thank You For your clarification.
I just want to know one more thing related to conveyance allowance, that esic is not applicable on Conveyance allowance,Is it true?
Kindly help Me understand this.
Thanks regards
Bijay.
From India, Vadodara
Thank You For your clarification.
I just want to know one more thing related to conveyance allowance, that esic is not applicable on Conveyance allowance,Is it true?
Kindly help Me understand this.
Thanks regards
Bijay.
From India, Vadodara
Dear Mr. Korgaonkar Sir, Thanks for your prompt revert. If it is applicable,Can you Pls help me getting some documents on this pls. Thanks regards. Bijay.
From India, Vadodara
From India, Vadodara
Dear Bijay ji,
You are requested to read below given link:
https://www.citehr.com/453369-esic-s...#ixzz2UrZ0FizH
From India, Mumbai
You are requested to read below given link:
https://www.citehr.com/453369-esic-s...#ixzz2UrZ0FizH
From India, Mumbai
Dear Saurav1314,
I am aware of it. This is not a subject matter in this thread. Subject matter is -Is the conveyance Allowance paid to employees falls under statutory compliance as social welfare measure or it forms a part of company policy?
From India, Mumbai
I am aware of it. This is not a subject matter in this thread. Subject matter is -Is the conveyance Allowance paid to employees falls under statutory compliance as social welfare measure or it forms a part of company policy?
From India, Mumbai
Dear Mr.Korgaonkar Sir,
I have gone thru the link provided by you,However I have even read some other cases, Hence Im literally confused, as in some cases I have seen that Washing allowance being the special expenses as -- It is a sum paid to defray special expenses entailed by the nature of employment and as such this amount does not amount to wages.Hence esic not applicable,Then Why not conveyance allowance, Secondly -Pls find below lines I have retrieved from other thred of this site for your clarification pls -
CONVEYANCE ALLOWANCE
Conveyance allowance is paid to the employee to compensate the expenses incurred by the employees on travelling etc. The travelling allowance or value of any travelling concession is also being paid to the employees in the nature of conveyance allowance, which is neither wages for the purpose of coverage of employees under Sec.2(9), nor it is treated as wages for the payment of contribution under Section 2(22) of the ESI Act.
In the case M/s.Hyderabad Asbestos Cement Products Vs. ESIC, Punjab & Haryana High Court, Chandigarh as well in the case of M/s.Harihar Polyfibres, the Supreme Court have held that conveyance allowance is not wage under Section 2(22) of the ESI Act.
(Earlier instructions were issued by this office vide No.P.11/13/97-Ins.IV dated 27.1.97.)
Thanks
Bijay
From India, Vadodara
I have gone thru the link provided by you,However I have even read some other cases, Hence Im literally confused, as in some cases I have seen that Washing allowance being the special expenses as -- It is a sum paid to defray special expenses entailed by the nature of employment and as such this amount does not amount to wages.Hence esic not applicable,Then Why not conveyance allowance, Secondly -Pls find below lines I have retrieved from other thred of this site for your clarification pls -
CONVEYANCE ALLOWANCE
Conveyance allowance is paid to the employee to compensate the expenses incurred by the employees on travelling etc. The travelling allowance or value of any travelling concession is also being paid to the employees in the nature of conveyance allowance, which is neither wages for the purpose of coverage of employees under Sec.2(9), nor it is treated as wages for the payment of contribution under Section 2(22) of the ESI Act.
In the case M/s.Hyderabad Asbestos Cement Products Vs. ESIC, Punjab & Haryana High Court, Chandigarh as well in the case of M/s.Harihar Polyfibres, the Supreme Court have held that conveyance allowance is not wage under Section 2(22) of the ESI Act.
(Earlier instructions were issued by this office vide No.P.11/13/97-Ins.IV dated 27.1.97.)
Thanks
Bijay
From India, Vadodara
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ESI-Not-applica ble-on-Conveyan ce-Allowance.do c
Revision in conveyance allowance in Maharashtra from 1.10.2013.pdf