16 Sep , 2021 By : monika singh
The tax department has started questioning many companies as to whether they have distributed these common expenses across all their registered entities. It is investigating whether the companies are dividing the branding expenses across various states
When Shah Rukh Khan, Virat Kohli or any other celebrity endorses a brand or a company, is the branding exercise only for the corporate head office or the whole organisation? That’s the question indirect tax authorities have started asking several companies which have engaged film stars and sports personalities for brand promotion, advertising or any other form of celebrity endorsement.
The indirect tax department want companies to split such expenses proportionately across all registered entities throughout the country under a cross charge mechanism, said people aware of the matter.
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