Frienge Benefit Tax

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Vivek Gangwal

Vivek Gangwal (Querist)

13 February 2008 my co. has given cars to dealers as incentives worth rs.1.17 crore. whether the same is liable to fbt

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

13 February 2008 target incentives given to distributors,
for performance,is considered to not liable to FBT as per Ans. to Q. 61 of the circular

Vivek Gangwal

Vivek Gangwal (Querist)

13 February 2008 on the parrell line we are giving gold coins to the dealer as gift can we the same be treat FBT free ambit

else what is the diff between Q61 & Q:97 & 98

R.V.RAO

R.V.RAO (Expert)

13 February 2008 expenses on conference of agents and dealers or development advisers is liable for FBT (Q.56).

But it has been made clear that brokerage and selling commission (Q.58), reimbursement of expenses incurred by salesmen appointed by distributors (Q.59), distribution of rebates, bonus and quantity discounts based upon performance are mere abatement of price and will not be liable for FBT. (Q.60,61). Marketing research expenses for testing efficacy of the product is also part of selling expenses, but research of general nature will be liable for FBT (Q.62).
Gifts given as part of sales promotion in pursuance of trade schemes to distributors, retailers and customers will be liable for FBT under 115WB(2)(O) (Q.97 and 98).
R.V.RAO

Vivek Gangwal

Vivek Gangwal (Querist)

13 February 2008 what will be answer if it is incentives prescibed in Q:61 whether the same is contradictory with Q:97 & 98, car provided to dealers as incentives not liable to fbt.

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