TMI BlogVAT on free goodsX X X X Extracts X X X X X X X X Extracts X X X X ..... Hello, Is there any VAT on goods given as free of cost basis and what is the procedure of invoicing the same.? - Reply By Ramanujam Varadarajan - The Reply = If there is no consideration, explicitly or implictly and goods are provided on FOC basis, there would be no VAT. Invoice is to be raised for FOC / value charged at Re.1 etc. However, it may impact availment of VAT input tax credit on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods if purchased locally - Reply By Harish Chander Bhatia - The Reply = Further to reply of Sh Ramanujam, the input VAT, if goods purchased locally, will not be permitted, and that adjust in reduction of input VAT is must. - Reply By Harish Chander Bhatia - The Reply = Further to reply of Sh Ramanujam, the input VAT, if goods purchased locally, will not be permitted, and that adjus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in reduction of input VAT is must. - Reply By CA.S Ganesh - The Reply = Generally, VAT is to be collected on sale of goods to a person in a consideration. If goods are given at free of cost, i.e, sample does not attract VAT. But if It is dutiable product, then it has excise duty liability. - Reply By RAMASWAMY KRISHNA IYER - The Reply = Madam, If the goods are given free as trade dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count, then the said free issues are not assessable.Similarly IPT on such goods also need not be reversed. This is on the principle that the price charged on goods sold is already inclusive of the trde discount in terms of qty. However when the goods are given free as compliments then the said issue even though not assessable (since there is no consideration), the IPT on such goods have to be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... versed. CA. K. Ramaswamy (Prakash) - Reply By madhav aphale - The Reply = If goods supplied free of Cost under warranty, still is there any impatct on vat input? - Reply By Ramanujam Varadarajan - The Reply = Goods given on FOC basis under warranty replacement would not be liable to VAT. The goods under warranty arranement may be supplied thru deivery challan referring clearly that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is supplied as Warranty replacement on FOC basis. - Reply By kavita agarwal - The Reply = We are a trading concern dealing in Electronic products , in case we want to give DVD player free along with home theater then what will be the the treatment for the same in books/how to invoice the same.? - VAT on free goods - Query Started By: - kavita agarwal Dated:- 1-11-2013 Value Added Tax - VAT-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST - Got 8 Replies - VAT and Sales Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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