FBT on Coupons Reimbursements

This query is : Resolved

Amit Sharma (Querist)
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24 September 2008 coupon reimbursement to mechanics & dealers is liable under FBT or not?

This coupon under various denominations with aim of increasing product sales.

Support your answer with documentary evidence.

thanks
Amit

Jitender

Jitender (Expert)
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24 September 2008 this is not liable to fbt.
u can refer FAQ on fbt in this regard.

Amit Sharma

Amit Sharma (Querist)
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24 September 2008 Jitender,

i am unable to get it. pls give me some link.

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Sachin Jain CA, CS, CWA

Sachin Jain CA, CS, CWA (Expert)
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24 September 2008 Only the coupons given to employees, which are usable only at eating joits n not transferable are exempt from FBT. Coupons given to dealers are in the nature of SALES PROMOTION & liable to FBT.

Ravikumar.G

Ravikumar.G (Expert)
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24 September 2008 refer Sec 115WB(2)(B) - Expenditure on pre paid food vouchers and used only at eating joints or outlets - paid vouchers which are not trasferable. - NOT liable for FBT

Amit Sharma

Amit Sharma (Querist)
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25 September 2008 Dear Ravikumar

Your reply pertains to Food Coupon whereas my query relates to coupon given to (as cash) Distributors/Mechanics.

The system is this coupon wil be attached with our products. Once its reached the distributors/mechanics, they will detach and encash from us.

Amit