Fringe Benefit Tax
This query is : Resolved
20 March 2008
hi,
a herbal product company has given diwali gift to doctors (gift in kind, not medicines)
the expense has been treated as sales promotion expense
plz tell me,
can it be taken under sales promotion as per FBT?
How is sales promotion and gift differentiated?
or
will the expense fall under Festival celebration expense?
a herbal product company has given diwali gift to doctors (gift in kind, not medicines)
the expense has been treated as sales promotion expense
plz tell me,
can it be taken under sales promotion as per FBT?
How is sales promotion and gift differentiated?
or
will the expense fall under Festival celebration expense?
Chintan Gajjar
(Expert)
20 March 2008
It will fall under the category of Sales promotion exp. As the intension of the same is related with sales promotion.
20 March 2008
hi chaitanya........
But the gift is given in diwali occassion not in normal situation, so this will come as festival expenses not as sales promotion.
So 50% of the amount is liable for FBT.
But the gift is given in diwali occassion not in normal situation, so this will come as festival expenses not as sales promotion.
So 50% of the amount is liable for FBT.
Praveen Babu
(Expert)
20 March 2008
Any Specific Rule overrides General Rule.
So As Ricky said Festival overrides business promotion.
The amount is chargeable @ 50%
So As Ricky said Festival overrides business promotion.
The amount is chargeable @ 50%
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