In order to encourage startups, especially e-commerce companies, the finance ministry may look at according beneficial tax treatment to their brand building expenses in the forthcoming Budget.
In order to encourage startups, especially e-commerce companies, the finance ministry may look at according beneficial tax treatment to their brand building expenses in the forthcoming Budget.
According to experts, the government could allow startups and e-commerce companies to appropriate initial brand building expenses over several years for accounting benefits. This will help them save tax, when they become profitable. “The AMP expenses are important for e-commerce companies to acquire new customers. A major part of this expenses is intangible and the government should allow identified category of AMP expenses to be capitalised,” KPMG (India) Partner Tax Amarjeet Singh said.
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