E-comm firms must not be asked to reclassify discounts: Pai
Former Infosys CFO Mohandas Pai has said tax authorities are wrong in asking e-commerce firms to reclassify discounts as capital expenditure. The statement came after Flipkart lost its appeal against the Income Tax department over reclassification of marketing expenditure and discounts. He added that if discounts are withdrawn, business would stop as people shop for the discount on sales.