product and brand name etc. and these articles cannot be
reckoned as freebies given to the Doctors. It was further
submitted that since the assessee ... noted that the assessee's act of incurring
expenditure or providing freebies is an offence. The A.O,
therefore, following the Board Circular above
Market research; (iv) free trial of
contact lenses related expenses, (v) freebies provided to promote sales,
etc. These expenses are purely sales related and have ... sale, conferences, market research,
Page 7 of 47
8
free trial, freebies, etc (for AY 2006-07 to 2009-10) as part
reproduced below:-
66. Whether expenditure on free offers (with products)
such as freebies like tattoos, cricket cards or similar
products, to trade or consumers (excluding ... artwork or for payment of royalty charges in respect of
such freebies is liable to FBT?
Ans. Any expenditure (including expenditure on artwork
and royalty
appreciating that the free samples were neither 'freebies' not 'gifts'
and were distributed by the appellant to doctors/medical practitioners ... appellant to
doctors/ medical practitioners and others constituted gifts or
freebies, which are not allowable in terms of Explanation to
section
product, brand reminder, etc. These articles cannot be
reckoned as freebies given to the doctors. Even the free sample of medicine is
only to prove ... quality of the drugs. This again cannot be reckoned as freebies given to the
doctors but for promotion of its products. The pharmaceutical company, which
Apex Laboratories Pvt. Ltd. (supra) has held that
4
acceptance of freebies by medical practitioners was punishable as
per Circular issued by Medical Council ... India under MCI
Regulations, 2022, gifting of such freebies to medical
practitioners would also be prohibited by law and therefore
expenditure incurred in distribution
India' (MCI) doctors were not authorized to avail such type of
freebies in lieu of prescribing medicines to the patients. He accordingly
submitted that
Dealer Gift
DCIT (204) 146 ITD 730 (Del) • In-shop demonstrator expenses
• Freebies items/ free gifts
Glaxo Smithkline Consumer • Sales promotion
Healthcare Ltd. vs. ACIT ... 2014)
A.W. Faber Castell (India) Pvt. Ltd. vs. • Freebies items/ free gifts
DCIT ITA No. 577/Mum/201
Reebok India Co. vs. ACIT
prohib ited by law while
appreciating that these cannot be considered as freebies to
doctors.
18. It was further argued that giv en the complex
under:
Of course, Eklavya books carry a price tag, not distributed as
freebies but distributed through a mechanism which has it is own
rationale
