Per-kilometre reimbursement: Meaning and Definition

What does per-kilometre reimbursement mean?

Per-kilometre reimbursement is another name for Mileage Reimbursement. Mileage reimbursement is a payment made by employers to employees who use personal vehicles for business travel, calculated based on distance driven and a predetermined per-kilometre rate.

The two names mean the same thing. You will see "per-kilometre reimbursement" in some ledgers, reports and contracts and "Mileage Reimbursement" in others. The full entry covers how it works, with examples.

Read the full definition of Mileage Reimbursement

Topics

Employee reimbursements

From the glossary

Related terms.

Employee reimbursements Mileage Reimbursement Mileage reimbursement is a payment made by employers to employees who use personal vehicles for business travel, calculated based on distance driven and a predetermined per-kilometre rate. Also called mileage allowance, conveyance reimbursement, per-kilometre reimbursement GST basics GST (Goods and Services Tax) India's unified indirect tax that replaced multiple central and state levies, creating a single national market for goods and services. Also called Goods & Services Tax TDS TDS (Tax Deducted at Source) A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf. Also called withholding tax, tax deduction at source, tax withheld at source Accounts payable Accounts Payable (AP) Money a business owes to its suppliers and vendors for goods or services received but not yet paid for. Also called trade payables, sundry creditors, payables Payroll and labour compliance Professional Tax (PT) A state-level tax levied on salaried employees, professionals, and traders based on their income slabs. Also called profession tax, P-tax Expense policy Per Diem Per diem is a fixed daily allowance paid to employees to cover routine expenses like meals, local transport, and incidentals during business travel, replacing the need for individual receipt submission. Also called daily allowance, per diem allowance

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