Pharma Tax Rulings: Freebies to Doctors, PF/ESI Disallowances, R&D Deductions, Biotechnology Grant, and Interest Income.

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....Various issues related to allowability of expenses, deductions, transfer pricing adjustments, and other income tax matters for a pharmaceutical company. Key points are: Expenses incurred in providing freebies to doctors are disallowed u/s 37(1) retrospectively from 14-12-2009 as per MCI regulations and CBDT circular. Disallowance restricted to 5% of business advancement and sales promotion expenses, and entire doctor sponsorship expenses disallowed. Employee PF/ESI contribution disallowed for late deposits. Deductions u/ss 80-IC and 80-IE allowed for certain incomes like notice pay, scrap sale, service tax refund, miscellaneous income, export benefits, insurance claims, forex gains, cash discounts. Interest income eligible after excluding r.........