FBT on Sales Promotion

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Rama Mahawar (Querist)
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11 September 2009 Hi,

Is FBT Applicable on Sales Promotion Expense

I work in IT company and in my company's sales promotion ledger generally, expenses related to gift given to customer, dineer lunch expense of customer, any expense by Sales guys for sales promotion is included.

chetan soni

chetan soni (Expert)
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11 September 2009 FBT is payable when any additional benefit passed to employees other than salary. In your case sales promotion expenses included expenses for gift to customer, dinner for customer & sales guys expenses.

From this only sales guys expenses will chargeable to FBT. In other case there is no employer & employee relationship exist. hence FBT on others.