Bang on discount bucks too: Flipkart tax ruling to benefit e-com players

Tribunal says such expenses can be treated as revenue expenditure

An income tax tribunal has permitted e-commerce player Flipkart to claim income tax deduction on discounts provided to customers as well as other advertising and marketing expenses, a ruling that will have a bearing on how online marketplaces treat this kind of expenses. 
 

The ruling will also have repercussions for businesses in general.   

The Income Tax Appellate Tribunal (ITAT), Bengaluru, on Wednesday ruled in favour of Flipkart’s appeal against the income tax department’s  move to raise the tax demand of Rs 1.1 billion after adding its spend on discounts and advertisements and marketing to the company’s income for tax