Page 95 - ADVANCED TAXATION - Day 1 Slides

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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.