21 January 2012
I am supplying 5 Nos free goods along with 25 Nos of my product and mentioning the same in the invoice as well. Should the input be reversed on materials used in the manufacture of the free goods on a proportionate basis?
30 January 2012
In my opinion there is no requirement of reversal of VAT input tax. The reason being the sale value shall be treated as the consideration for the goods sold as well as goods given away as free of cost.. that shall be the total consideration which is taxable.