{"id":30909,"date":"2018-10-27T11:23:58","date_gmt":"2018-10-27T05:53:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=30909"},"modified":"2018-10-27T11:23:58","modified_gmt":"2018-10-27T05:53:58","slug":"pharma-promotions-tax-exempt-tribunal","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pharma-promotions-tax-exempt-tribunal\/","title":{"rendered":"Pharma promotions tax exempt: tribunal"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-national\/pharma-promotions-tax-exempt-tribunal\/article22885139.ece\"><b>Pharma promotions tax exempt: tribunal<\/b><\/a><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A recent decision of the Income Tax Appellate Tribunal\u2019s Pune bench <\/span><b>allowing pharmaceutical companies to account for their spending on doctors as a deductible expenditure<\/b><span style=\"font-weight: 400;\"> has sparked off a fresh debate on ethics.<\/span><\/li>\n<\/ul>\n<p><b>More in news:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Since the companies are out of the purview of the Medical Council of India (MCI), <\/span><b>money spent on promotions, which in some cases could be gifts, travel, hospitality and so on for doctors, besides medical conferences and samples, can be claimed as deductible expenditure.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Doctors accepting such promotions may be <\/span><b>violating the code of ethics of the MCI.<\/b><\/li>\n<\/ul>\n<p><b>Why is it in news?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The tribunal\u2019s order came in a case involving <\/span><b>Emcure Pharmaceuticals Ltd, which filed returns in which expenses of Rs. 2.07 crore were claimed as \u2018advertisement sales promotions\u2019.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Of this, about <\/span><b>Rs. 50 lakh was for \u2018print and promotion\u2019 and the remaining Rs. 1.57 crore was for \u2018sales promotions\u2019<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> The pharma company\u2019s claim was <\/span><b>disallowed by the IT department <\/b><span style=\"font-weight: 400;\">on the ground that it violated the MCI code of ethics.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">However, the IT Appellate Tribunal <\/span><b>reversed the decision by the assessing officer and ruled in favour of the company.<\/b><\/li>\n<\/ul>\n<p><b>Conclusion:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> The MCI code may not govern pharma companies but there are <\/span><b>ethical problems as it directly affects patients.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The companies should <\/span><b>have a code of ethics.<\/b><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Pharma promotions tax exempt: tribunal Context: A recent decision of the Income Tax Appellate Tribunal\u2019s Pune bench allowing pharmaceutical companies to account for their spending on doctors as a deductible expenditure has sparked off a fresh debate on ethics. More in news: Since the companies are out of the purview of the Medical Council of&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/pharma-promotions-tax-exempt-tribunal\/\">Continue reading <span class=\"screen-reader-text\">Pharma promotions tax exempt: tribunal<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-30909","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704895788},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=30909"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30909\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=30909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=30909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=30909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}