Entertainment is considered as hospitality of any kind and entertainment expenditure is the expense of providing entertainment. Entertainment expenses include the following but are not limited to:
• Meals
• Accommodation
• Transportation
• Admission fees
• Facilities and equipment used in connection with entertainment, amusement, or recreation.
As per the Corporate Tax law, 50% of the entertainment expenditure incurred in relation to customers, suppliers, shareholders and other business partners, shall be disallowed while computing corporate tax liability. Personal or non-business-related expenses are not covered.