Overview: It has been reported that e-commerce giant Flipkart (“Tax Payer”) has lost an appeal against Income-tax department (“Tax Authority”) for issue regarding classification of marketing expenditure and discounts. The First appellate authority (Commissioner of Income-tax) opined that such marketing expenditure and deep discounts cannot be treated as revenue expenditure as it was incurred to build brand […]
In a relief to Flipkart the Income Tax Appellate Tribunal rejected the Income-tax department’s argument that, discounts offered by the flipkart should be reclassified as capital expenditure. This ruling is very important from the perspective that, product discounting, advertisement and marketing expenses constitute a major portion of expenses of e-commerce companies/ start-up companies. Click here to view[…]
Query: Can restaurants avail input tax credit (‘ITC’) if they charge GST at the rate of 12% (Non – AC) 18% (AC) instead 5% on the sales made by them? Service tax regime: In earlier tax regime abatement of 70% was given on service tax levied on restaurant services by amending the notification No. 1/ 2006-ST, dated[…]
Introduction Authority for Advance Ruling, Kerala has recently clarified that recovery of food expenses from the employees for the canteen services provided by company would come under the definition of outward supply defined in section 2(83) of the Act, 2017 and, therefore, would be taxable as a supply of service under GST. The interpretations done by the[…]