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Fringe Benefit TAx

Rakesh Aggarwal (Student) (100 Points)

11 December 2008

Is Advertisement given on news paper (print media) liable to FBT?

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12 Replies

(Guest)

I think yes

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CA Jimmit D Mehta (Employed) (494 Points)
Replied 11 December 2008

sry friend, no idea as FBT we r not having in PCC

if u know something abt it. Let me know

Rakesh Aggarwal (Student) (100 Points)
Replied 11 December 2008

As per section 115WB(2)(D)

Expenditure on advertisement of any form in any print(including journals, catalogues or price lists) or
electronic media or transport system, hoardings, signs, art work, painting, banners,direct mail etc.

is excluded..

But i want to know about Newspaper ADV

Sujith (Chartered Accountant) (83 Points)
Replied 11 December 2008

My Friend !! Advertisement in Newspaper is absolutely exempted from FBT. Dont worry, you shall not be required to pay FBT

(Guest)

No. it is excluded from FBT.

In recent amendements so many advertising expenditures are excluded like brand ambassidor etc

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Rakesh Aggarwal (Student) (100 Points)
Replied 11 December 2008

need the view of an expert

CA CHINTAN AJMERA (Chartered Accountant) (2987 Points)
Replied 11 December 2008

It is excluded from fbt

RAJU (LEARNER) (1089 Points)
Replied 11 December 2008

Mr. Rakesh,

Like you said, there is exemption if the expenditure is towards advertisement of any form in any print or electronic media. Since News paper is a print media, why you are unsure of exemption.

Rakesh Aggarwal (Student) (100 Points)
Replied 11 December 2008

I am little confuse in Sales promotion & Advertisement.............

RAJU (LEARNER) (1089 Points)
Replied 12 December 2008

Dear Rakesh,

Scope for levy of FBT on advertisement is covered under `sales promotion including publicity`. But certain expediture on advertiisement is excluded from the purview which includes advertisement on print media. Hence, I believe there is no liability.

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Rakesh Aggarwal (Student) (100 Points)
Replied 12 December 2008

What if Advertisement in newspaper for purpose of Sales promotion?

Can you people explain?

RAJU (LEARNER) (1089 Points)
Replied 12 December 2008

Mr. Rajesh, here is my explanation;

As We all know, advertisement is part of sales promotion and therefore FBT on advertisement is not specifically provided for in the Act. Further it has given exemption on advertisment expenses specified therein since it is part of sales promotion.

Hope you have been clarified.