free issue of material


This query is : Resolved 

(Querist)
12 April 2009 whether sales tax will be applicable on free issue of material which is given along with normal taxable sales, when it is clear that it is not a part of sales promotion?

Hiral Raja (Expert)
12 April 2009 In case the free material is not a part of sales promotion, then it will be discount. Sales tax will not be applicable on free issue of material since there is no consideration for the same.

12 April 2009 sales tax will not be applicable

12 April 2009 Value added tax is not to be charged by the seller for free samples issued along with normal sales. But if the purchaser sells the above mentioned free samples for a price he has to levy value added tax. This is the law prevailing in KERALA. Like wise the querist has to check his own STATE law before arriving at the final answer.


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