https://www.taxtmi.com/forum/issue?id=106212 VAT does not apply to goods supplied free of cost where no consideration exists; suppliers may invoice such transfers as FOC or at a nominal value. Free issues treated as trade discounts are not assessable and do not require input tax reversal, whereas complimentary free supplies require reversal or adjustment of input tax. Warranty replacement goods supplied FOC are not liable to VAT and should be recorded via delivery challan indicating warranty replacement. en-us Fri, 01 Nov 2013 11:22:41 +0530 Thu, 23 Jan 2025 15:57:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=106212 VAT does not apply to goods supplied free of cost where no consideration exists; suppliers may invoice such transfers as FOC or at a nominal value. Free issues treated as trade discounts are not assessable and do not require input tax reversal, whereas complimentary free supplies require reversal or adjustment of input tax. Warranty replacement goods supplied FOC are not liable to VAT and should be recorded via delivery challan indicating warranty replacement. Discussion-Forum VAT / Sales Tax Fri, 01 Nov 2013 11:22:41 +0530 https://www.taxtmi.com/forum/issue?id=106212