FBT on Coupons Reimbursements

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This query is : Resolved

Amit Sharma (Querist)

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)

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

Amit Sharma

Amit Sharma (Querist)

24 September 2008 Jitender,

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

Sachin Jain CA, CS, CWA

Sachin Jain CA, CS, CWA (Expert)

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)

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)

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

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