Page 88 - F6 Slide - Taxation - Lecture Day 4

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.