A car or other high-value products provided by a brand to a social media influencer may not always be treated as a simple ‘gift’ and could have income-tax and GST implications, chartered accountants discussed at a two-day sub-regional conference of the Institute of Chartered Accountants of India (ICAI) in Vadodara. More than 400 CAs from Gujarat and the western region are attending the conference, titled ‘Antara’, organised by the Western India Regional Council (WIRC) of ICAI and jointly hosted by all ICAI branches in Gujarat.
Taxation of social media influencers has emerged as a key area of discussion at the conference, with CAs examining their multiple sources of income and the tax treatment of brand collaborations.
One of the issues discussed was the treatment of products and high-value assets provided by brands to influencers. For instance, if an automobile manufacturer provides a car to a YouTuber as part of a brand collaboration, the nature and purpose of the arrangement could determine its tax treatment.
Similar tax questions may arise when influencers receive products, services or other benefits in exchange for promotional activities.
WIRC chairperson said influencer taxation had been included through case-study-based sessions to help CAs understand the practical challenges involved.
“Social media influencers have different sources of income and their taxation structure is becoming increasingly important,” he said.
He also noted that social media was emerging as an important platform for professionals, including CAs, to build their personal brands and create new business opportunities.
Vadodara branch chairperson said the conference was focused on changes and transitions in the financial and regulatory landscape.
Other topics being covered at the conference include the new Income Tax Act, the GST Appellate Tribunal, AI and taxation, intellectual property rights, impersonation, branding and charitable trusts.
Source from: https://timesofindia.indiatimes.com/articleshowprint/133718981.cms
