VAT rate on combo offer

[Jeetendra Sharma]

In a multiplex in a combo offer (Pepsi+samosa) is being sold under name of Samosa combo.

The Bill reflects the same as Combo(not shown separately as Samosa and Pepsi).

If sold separately, then samosa vat rate is 12.5% and Pepsi is 20%.

My question is that, at what rate they should charge vat on combo offer.

whether at proportionate rate or at maximum vat rate i.e 20%,

[YAGAY andSUN]

Dear Jeetendra,

VAT Law does not recognize Combo products/goods, therefore appropriate applicable rate of VAT would be leviable/chargable on the independent goods.

Regards,

YAGAY and SUN

(Management, Busniess, and Indirect Tax Consultants)

AI Summary

VAT Law Clarifies: Combo Offers Must Apply Item-Specific Rates, Not Maximum Rate for Multiplex Sales. A query was raised regarding the appropriate VAT rate for a combo offer (Pepsi and samosa) sold in a multiplex. Individually, the VAT rate for samosas is 12.5% and for Pepsi is 20%. The question was whether the VAT for the combo should be charged at a proportionate rate or at the maximum rate of 20%. The response clarified that VAT law does not recognize combo products, so the applicable VAT rate should be charged on each item independently.