Policy template

Corporate Travel Policy Template for Indian Companies

A ready-to-adapt structure with grades, city-tier caps, ground rules, approval matrix, per-diems and GST discipline. Copy sections into your own policy and adjust to your risk posture.

1. Purpose & scope

Who the policy applies to — full-time employees, contractors, board, guests
What travel is covered — domestic, international, intra-city, offsites, client visits
Effective date, policy owner (usually CHRO or CFO office), review cadence

2. Travel grades & class of travel

Grade M1–M3 (junior): Economy air, 3-star / ₹5,500 city-tier cap, AC hatchback ground
Grade M4–M5 (mid): Economy / Premium Economy, 4-star / ₹8,500 cap, AC sedan ground
Grade M6+ (senior): Business (>4h flight), 5-star / ₹14,000 cap, SUV / chauffeur ground
Board / CXO: As required, with pre-trip disclosure to audit committee

3. City-tier hotel caps

Tier A (Mumbai, Delhi-NCR, Bengaluru): 20% uplift on above caps
Tier B (Hyderabad, Pune, Chennai, Kolkata, Ahmedabad): base cap
Tier C (rest of India): 15% discount on base cap
Cap refresh: every 6 months against a market benchmark (STR / booking.com sample)

4. Ground mobility rules

Airport transfers: pre-book via approved partner — no app-based surge reimbursement
In-city cabs: approved partner only, per-km cap, dead-mileage rules applied
Multi-day car rental >2 days: package rate via corporate car rental partner
Women safety: post-22:00 rides require named safety SPOC and escort protocol

5. Per-diems & incidentals

Tier A / Metro: ₹1,500/day; Tier B: ₹1,200/day; Tier C: ₹900/day
International: as per country grid (published separately)
Coverage: meals, laundry, tips, local incidentals — receipts not required within cap
No double-dip: no client meal + per-diem for the same meal window

6. Approval matrix

Domestic travel within grade + within cap: manager +1 approval
International or above-cap: manager +1 and CFO-office approval
Out-of-policy exception: written justification + BU head + CFO-office approval
Cancellation / no-show >₹5,000 without valid reason: recovered from cost centre

7. Expense, GST & reconciliation

All bookings via approved SBT / TMC / mobility partner — direct bookings not reimbursed
GST-compliant invoices with correct HSN and place-of-supply required for ITC
Expense submission within 15 days of trip end; overdue reports auto-escalated
Monthly reconciliation between TMC / mobility MIS and finance ledger

FAQ

How often should a corporate travel policy be reviewed?

Twice a year for hotel and per-diem caps (they drift with market rates), and annually for the full policy structure — grades, approval matrix, GST clauses. Trigger an off-cycle review when GST rules change or a major vendor is switched.

Should ground mobility be inside the travel policy or separate?

Inside. Airport transfers, in-city cabs and multi-day car rentals are travel spend and should follow the same approval matrix, GST discipline and safety SLA as air and hotel. A separate ground policy usually causes duplicated rules and vendor sprawl.

What is the right per-diem for India travel?

Most Indian enterprises use ₹1,500 / ₹1,200 / ₹900 per day for metro / tier-B / tier-C cities respectively, with international grids published separately. Anchor the number to your grade structure — the absolute figure matters less than consistency.

Do we need a separate policy for women's safety?

The safety protocol lives inside the ground-mobility section — post-22:00 escort rule, named safety SPOC, SOS response SLA, incident escalation matrix. Some regulated industries (BFSI, ITES) add a state-specific compliance annexure.

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