Expenditure

This query is : Resolved

Sreenivas (Querist)
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04 October 2008 To All,
Exhibition Stall expenses attract any FBT, Advertisement is Souveneir full pages cost about 22000, can be put in advertisement exps. and shall we deduct any TDS for that payment.
Please Clarify me.
Regards,
Sreenivas.S.R.

Venkat Rao Marella

Venkat Rao Marella (Expert)
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04 October 2008 Exhibition stall expenses will attract FBT as that projects the image of the company which in turn will result in promoting sales of the company. TDS is deductible from the advertisement expenses paid to advertise in the souvenir.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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04 October 2008 No. Exhibition stall expenses does not attract FBT as it will be covered under Proviso (ii)of Section 115WB(2)(D)

Advertisement in a souvenier is never excluded from the head of "Advertisement", section 194C will be applicable regarding deduction of TDS, accordingly 1% TDs deductable.

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Ravikumar.G

Ravikumar.G (Expert)
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04 October 2008 LIABLE FOR FBT:
1) Expenses on free offers, artwork or payment of royalty charges in respect of free offer products. 2) Expense incurred for hotel stay, air ticket charges in relation to customers/clients. 3) Expenditure on gifts under trade schemes or for promotion of co's products to Distributors / Retailers. 4) Employer carrying out the product research through its own employees, the expenditure considered deemed fringe benefits under any other clause.

Ravikumar.G

Ravikumar.G (Expert)
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04 October 2008 NOT LIABLE FOR FBT:1) Advertisement in any print, journals, catalogues or price list or electronic media or transport system, including rental on advertisement. 2) Business meetings: Holding or participating in press conference or business convention or fair or exhibition. 3) Sponsorship of any sport or any other event organised by any Government Agency, Trade Association or Body. 4) Statutory Advertisement : Publication in any print or electronic media of any notice required to be published by or under any law or by an order of a court or a Tribunal. 5) Other Advertisement: Advertisement by way of Signs, Artwork, Painting, Banners, Awnings, Direct Mails, Electric Spectaculars, Kiosks, Hoardings, Bill Boards, display of products or by way of such other medium of advertisement. 6) Payment to advertising agency for any of the above purpsoe. 7) Sales promotion expenses like brokerage and commission / performance based commission. 8) Expenditure relating to salesmen appointed by distributors for co's products reimbursed through credit notes. 9) Sales discount/rebates to wholesalers/customers or bonus points given to credit card customers. 10) Incentives to distributors for achieving sales targets. 11) Product marketing research expenses paid to an outside agency. 12) Expense in the nature of call centre charges for canvassing sales or carrying out post-sales activities. 13) Expenditure on ad film 14) Product Testing Expenses 15) Expenditure on distribution of free samples of either free of cost or at concessional rates. 16) Payment to persons of repute for promotion of the sale of goods / services of the business of the employer.