Tours given by suppliers

Tax queries 234 views 2 replies

For a retail trader, tours offered by his supplier as part of sales promotion will it be treated as income while computing retail traders income ??

Relevant clause in Income Tax act 

(iv) the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession ;

Replies (2)

Yes that is also taxable as business income and will form part of indirect income from business

Hi, Sales promotion of the retail trader or supplier? If it is sales promtion of retail trader then it is taxable as business income. If it is sales promtion of supplier so that retail traders buy his product then it is not taxable in the hands of retail traders. But it is sales promotion of the product of the supplier then the taxablity of the same should be decided by case laws. If it is a normal perq like free tour for family not at all connected with business then not taxable. Regards Kathik VKulkarni


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