Vat on gift items given as free during festival season sales

This query is : Resolved

doraiswamy nadarajan (Querist)
Follow

09 December 2012 Please any one can advice about the Karnataka VAT on Gifts given as free during festival season sales to customers. Whether the items given has free to be billed and taxed. Also please advice about the free gifts given to the walking customers in a retail show room for the lucky draws won by the customer.

Doraiswamy

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

10 December 2012 Mr D Natarajan,
A gift is not a sale. 'Sale' is defined in all VAT Acts as 'Transfer of property in goods for cash,defered payment or other valuble consideration'. Here gifts are the offers made without any coniderartion.Therefore it can not be included in sales value and no tax is to be charged on it.But,such offer of gifts should be on a policy declared in advance for promotion of products,clearance sale etc,by manufacturers or seasonal offerings on specific dates etc. Its genuineness is to be prooved......MJK

Message likes : 2 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SUMAN SAHA

CA Rahul Patwardhan

T E SOUNDARARAJAN

Hanuma Yanduri

CA Bijo scaria

Subscribe Now

Vat on gift items given as free during festival season sales

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

Manager- Finance and Compliance

GST CONSULTANT

CA Final

Accountant

GST CONSULTANCY