Entertainment expenditure

[Guest]

What is the present position on allow ability of expenses under the head entertainment which includes liquor.?

[Ganeshan Kalyani]

Your auditor will tell you all these details. It is not uniform. It depends on the business. This is what I understand. Thanks.

AI Summary

Entertainment expenditure allowability varies by business context and should be assessed with professional tax advice under income tax rules. Allowability of entertainment expenditure, including liquor, depends on the factual and commercial nexus with the taxpayer's business and is not uniform; assessment is context-specific and ordinarily requires professional advice and review of facts, accounting treatment, and documentation to conclude on tax treatment.