TaxTMI 
TaxTMI 
Dear Sir(S),
Please clarify is there any VAT on Promotional Gift coupons.
Regards,
Krishna, B
VAT on Promotional Coupons
15 May 2012 
1 Reply 
1846 Views Asked by
VAT on promotional gift coupons: not leviable under APVAT; consider possible service tax implications and review supply characterization.
Whether VAT applies to promotional gift coupons: under the Andhra Pradesh Value Added Tax framework no provision expressly subjects promotional gift coupons to VAT, so such coupons are not treated as taxable under the APVAT Act. Separate tax heads may nonetheless be triggered: Service Tax exposure is identified as a potential concern requiring analysis of the nature of services or consideration associated with the promotional activity. (AI Summary)
Whether VAT applies to promotional gift coupons: under the Andhra Pradesh Value Added Tax framework no provision expressly subjects promotional gift coupons to VAT, so such coupons are not treated as taxable under the APVAT Act. Separate tax heads may nonetheless be triggered: Service Tax exposure is identified as a potential concern requiring analysis of the nature of services or consideration associated with the promotional activity. (AI Summary)