Barter Deal FMV Strategy: Minimize Tax on Free Products
Use legitimate lower FMV valuation methods to reduce tax on brand collaborations
What is This Hack?
Instead of using brand's retail price (highest FMV), use legitimate lower valuation methods: wholesale price (65% of retail), negotiated value in contract, comparative market research, or depreciated value for used products. Save ₹30,000-1,50,000 annually on barter income taxes
Key Benefits
- Potential savings: ₹30,000-1,50,000 annually
- Implementation time: 3-5 hours per collaboration (negotiation + documentation)
- Legal status: fully legal
- Risk level: low
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