Goods supplied for display and sales

[Ravikumar muthusamy]

Our client wishes to supply goods for display on department stores and issue his own bill on sales to retail buyers and paying commn to the department stores. is it allowed under vat act and if so what is the formalities.

AI Summary

Client Must Charge VAT on Retail Sales; Department Stores to Charge Service Tax on Commission Invoices A client intends to supply goods for display in department stores and sell directly to retail buyers, issuing their own sales bill and paying a commission to the stores. The query concerns the applicability of VAT and the required formalities. The response clarifies that the client must charge VAT on sales to retail buyers. The commission paid to the department stores falls under business auxiliary services, requiring the stores to charge service tax on the commission invoice issued to the client.