Vat on free gift and packing exp

540565 (Accounts Manager) (24 Points)

08 February 2016  

Hi Dear,

We are selling one item selling price is 10,000/- per pcs.  we give gift Rs. 2000/- item which we buy from out side and the packing material is costing 500/- for per item we get only 7500/- net amout after paying gift and packing amt. On which amt we pay the vat ?  On 7500/- or 8000/- or 9500/- or 10000/- as the gift and packing material is coming tax paid from local market.