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Tax on Free Trade Samples

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 November 2009 Free Trade Samples to Customers:
Whether CST or VAT is applicable on free trade samples?

If yes, under which section of CST act or Delhi VAT Act.

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Guest

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Guest (Expert)
07 November 2009 If you Shown free trade samples as discount then VAT is not applicable.

For e.g Trader has sold 6 Ball pens @ 10 per pen to retailer but out of which 2 are sample pens

Then invoice should show

ball pen 6 @ 10 60 /-
Less : Discount 20 /-
Bal 40/-
Tax @ 4% 1.60
Total Pay40.60

By Showing this presantation you can reduce your quantity stock and save from VAT or CST Liability.
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G.Ramesh

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G.Ramesh (Expert)
07 November 2009 Agree with Rakesh
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Querist : Anonymous

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Querist : Anonymous (Querist)
07 November 2009 If we are giving only free trade samples by issuing the invoices and nothing else.
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Vishnu Saboo

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Vishnu Saboo (Expert)
11 November 2009 Where there is no considration, no sale tax would applicable.
considraton can be in form of Material against material, deffred payment, cash payment...etc.
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Murtaza I Bhagat

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Murtaza I Bhagat (Expert)
29 November 2009 no sales tax would be applicable.
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