TaxTMI 
TaxTMI 
Sir / Madam,
We are seding machinery for demo ( interstate ) shall we have to intimate to Sales tax dept (VAT) and kindly send us format of letter to be submited to Commissioner.
M - 9844325169
Sending Machinery Demo
13 Nov 2015 
7 Replies 
3788 Views Asked by
VAT on demo goods: no tax where items sent for demo on returnable basis; tax applies if sold at demo.
Goods sent interstate solely for demonstration on a returnable basis do not amount to a sale and are not subject to VAT; no departmental intimation is required. Annotate invoices with "GOODS SENT FOR DEMO PURPOSE ON RETURNABLE BASIS". If the goods are sold at the demo, account for VAT/CST by issuing a debit note and paying tax; if a tax invoice was issued, bring materials back, make a Sales Return Note to cancel the original transaction (retain LR for assessment) and issue a fresh invoice. (AI Summary)
Goods sent interstate solely for demonstration on a returnable basis do not amount to a sale and are not subject to VAT; no departmental intimation is required. Annotate invoices with "GOODS SENT FOR DEMO PURPOSE ON RETURNABLE BASIS". If the goods are sold at the demo, account for VAT/CST by issuing a debit note and paying tax; if a tax invoice was issued, bring materials back, make a Sales Return Note to cancel the original transaction (retain LR for assessment) and issue a fresh invoice. (AI Summary)