Vat on gift items given as free during festival season sales
This query is : Resolved
doraiswamy nadarajan
(Querist)
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
Doraiswamy
MJ Krishnamurthy
(Expert)
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
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
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