Reimbursement of foreign tour

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Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2015 sir,
is foreign tour provided by a manufacturer to a retailer free of cost on completing some task is taxable or not.under business income or somewhere else.
thanks.

Amol S Joglekar

Amol S Joglekar (Expert)
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19 August 2015 No, the tour as such is NOT taxable in the hands of retailer.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2015 sir but go through the section 28(iv),there they have written that this is taxable one

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2015 sir but go through the section 28(iv),there they have written that this is taxable one

Amol S Joglekar

Amol S Joglekar (Expert)
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21 August 2015 Section 28(iv): the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession.

Foreign Tour is NOT "benefit arising out of business or profession". In fact, it is for the benefit of the business or profession and hence not taxable u/s 28(iv)

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