Flipkart asked to reclassify marketing expense as capital expenditure by IT; will hurt more startups

Flipkart has lost an appeal against the income-tax department over the reclassification of marketing expenditure and discounts as capital expenditure, which involves substantial tax liabilities
As per income tax department, marketing expenese should not be treated as a cost but a capital expenditure, which means it should not be deducted from revenue; and instead should be treated as capital expenditure (i.e. you are liable to pay 30% tax).

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