My Friend is into Pharma Industry Sales & Marketing & gaining commission on sales & without any salary income. To the Doctors who will prescribe their products will give reward by way of trip to Dubai/ Bangkok/ Srilanka.in the month of Dec'12 & Jan'13. For safe side If my Friend ask the investor to give him the package amount of Trip on monthly basis by cheque as per the business performance. Then can my Friend return the same cheque amt to his investor, during that period for spending the amount for sponsoring the desired foreign trip to the Doctors . Should my Friend be charged any Tax liability for the amount taken and keeping it for some period?
CAclubindia
