Excise and vat on samples

As per Excise Rules Only manufacturer can pay Excise duty, so you doesn't require to pay excise duty.

If manufacturer remove their goods for sample & Testing, then they require to pay excise duty. 

You are making samples in house, so you are the manufcuturer in this case. Do you have central Excise Registration? If you are the manufacturer, you have to pay central excise duty on samples also. But vat is not applicable for samples becuase there is no value addition.

A Sample has no any Market value but it is free of cost and supplier not get any considration so in excise also it is nt taxable...

Mr Sonu Kumar, pls Read Rule - 4 of Central Excise valuation rule.

rgds/

Dear, as ur manufacturing samples inhouse so u have to see wether that goods are exciseable or not. If it is exciseable, then excise duty attracts. But u will fall under SSI exemption I think, so no Excise duty will be attracted in this case and no registration of excise is required.

VAT is also not attracted..

Dear, as ur manufacturing samples inhouse so u have to see wether that goods are exciseable or not. If it is exciseable, then excise duty attracts. But u will fall under SSI exemption I think, so no Excise duty will be attracted in this case and no registration of excise is required.

VAT is also not attracted..

Originally posted by : Sonu Kumar
	A Sample has no any Market value but it is free of cost and supplier not get any considration so in excise also it is nt taxable...

Mr Sonu Kumar, pls Read Rule - 4 of Central Excise valuation rule.

rgds/

Dear, as ur manufacturing samples inhouse so u have to see wether that goods are exciseable or not. If it is exciseable, then excise duty attracts. But u will fall under SSI exemption I think, so no Excise duty will be attracted in this case and no registration of excise is required.

VAT is also not attracted..

Dear, as ur manufacturing samples inhouse so u have to see wether that goods are exciseable or not. If it is exciseable, then excise duty attracts. But u will fall under SSI exemption I think, so no Excise duty will be attracted in this case and no registration of excise is required.

VAT is also not attracted..

Please check relevant classification for excise. Refer Central Excise Tariff Book. You are packing/repacking goods. Check if it means manufacture as defined in the Act and expanded in the relevant Tariff Chapter.

If packing/repacking goods amounts to manufacture under relevant chapter you will have to register under Central Excise and pay excise duty.

As far as VAT CST is concerned, so long as you are giving samples free, VAT / CST need not be paid as VAT CST is on sale. If you start raising Invoices and charge your customers for samples, it will amount to sale of samples and you will have to charge VAT/CST.

Excise duty on Samples:- Please go thru the attachment