A question regarding Promotional Give away

Subject: Legal Inquiry Regarding Business Model - Promotional Giveaway, Referral Program, and Tax Implications Business Model Overview: I am planning to launch a brand named "RAW" specializing in selling shirts, t-shirts, and clothing online. As part of our marketing strategy, we intend to run a promotional giveaway where customers have the chance to win a car, through a draw and they will be automatically enrolled for the draw if they buy something from the store like a t shirt. Additionally, we are considering implementing a referral program, offering incentives like earphones or phones to customers who successfully complete a specific number of referrals. The goal is to enhance customer engagement and brand loyalty. Specific Inquiries: 1. Promotional Giveaway: - What legal considerations should be taken into account when organizing a promotional giveaway with the chance to win a car? - Are there specific consumer protection laws or regulations that must be adhered to in organizing such a promotion? 2. Referral Program: - What legal considerations should be taken into account for implementing a referral program with incentives like earphones or phones? - Are there any specific regulations or laws governing referral programs in India? 3. Tax Implications: - How do tax implications work for a business running promotional giveaways and referral programs in India? - Can the expenses associated with the promotional giveaway and referral program incentives be considered as deductible business expenses? 4. Legal Compliance: - What general legal considerations and regulations should I be aware of to ensure the overall compliance of my business model in India? 5. National Examples - Lucky Draw for Car: - I have observed that several companies, both local and national, including brands like Croma and Bajaj Electronics, conduct lucky draws for a car as a promotional strategy. Customers are automatically enrolled in the draw when they make purchases within a specified period. What legal considerations should be taken into account for running such lucky draw promotions at a national level or state level like Telangana? - Are there any specific national or state regulations that may apply to such promotional giveaways, especially when offering a high-value item like a car? Thank you for your assistance.