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Fringe Benefit Tax

This query is : Resolved 
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(Querist)
20 March 2008 hi,
a herbal product company has given diwali gift to doctors (gift in kind, not medicines)
the expense has been treated as sales promotion expense

plz tell me,
can it be taken under sales promotion as per FBT?
How is sales promotion and gift differentiated?
or
will the expense fall under Festival celebration expense?
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santosh

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santosh (Querist)
20 March 2008 13
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Chintan Gajjar

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Chintan Gajjar (Expert)
20 March 2008 It will fall under the category of Sales promotion exp. As the intension of the same is related with sales promotion.
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RICKY

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RICKY (Expert)
20 March 2008 hi chaitanya........
But the gift is given in diwali occassion not in normal situation, so this will come as festival expenses not as sales promotion.
So 50% of the amount is liable for FBT.
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Praveen Babu

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Praveen Babu (Expert)
20 March 2008 Any Specific Rule overrides General Rule.
So As Ricky said Festival overrides business promotion.

The amount is chargeable @ 50%
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