VAT on Free products

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... VAT on Free products
Query (Issue) Started By: - JOHN SHANNEL Dated:- 1-5-2011 Last Reply Date:- 12-5-2011 VAT + CST
Got 2 Replies
VAT / Sales Tax
When our distributor buys 100 pkts of s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nacks we give 2 packets free. I want to confirm whether there is VAT payable for the 2 pkts sold. Also please tell in which section it applies. John Shannel Reply By CA Rachit Agarwal: The Reply: V .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at is levied on sale of goods. No doubt that when the goods are sold, valuation rules do apply. However sales price of 100 packets to include the sales price of 2 packets sold free. Hence in our opi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nion no vat would be levied on free goods Reply By R K Rajwanshi: The Reply: In my opinion It's total depend on described the scheme and provision of state laws. in proper planed manner extra burden .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of vat may be avoid.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X