TaxTMI 
TaxTMI 
VAT on Free products
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....AT on Free products<br> Query (Issue) Started By: - JOHN SHANNEL Dated:- 1-5-2011 Last Reply Date:- 12-5-2011 VAT + CST<br>Got 2 Replies<br>VAT / Sales Tax<br>When our distributor buys 100 pkts of sn....
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....acks we give 2 packets free. I want to confirm whether there is VAT payable for the 2 pkts sold. Also please tell in which section it applies. John Shannel Reply By CA Rachit Agarwal: The Reply: Va....
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....t is levied on sale of goods. No doubt that when the goods are sold, valuation rules do apply. However sales price of 100 packets to include the sales price of 2 packets sold free. Hence in our opin....
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....ion no vat would be levied on free goods Reply By R K Rajwanshi: The Reply: In my opinion It's total depend on described the scheme and provision of state laws. in proper planed manner extra burden ....
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....of vat may be avoid.<br> Discussion Forum - Knowledge Sharing ....