Page 95 - ADVANCED TAXATION - Day 1 Slides

Denial Of Input Tax: Entertainment

Input NOT

denied:

 Entertainment business if:

 Amount charged covers all direct and indirect costs or = open-MV

 No amount charged but for for bona fide promotional purposes
 Any excess food, not consumed by the customers during a taxable
supply, is subsequently given to employees/welfare organisations

 Any meal/accommodation to an employee required to be
away from his usual place of residence and work ≥ 1 night.

 Vendors operating taxable (not exempt) passenger
transport services.

 Vendors organising seminars/similar events for reward.

 Vendors who receive bets in respect of the outcome of a

race or any other event where the entertainment is

continuously supplied as a prize to its customers.