Hi,
Can anyone clarify following matter.
A company purchase Rs.1,50,000/- worth of material with VAT 5% in karnataka and the same material bill to customer for Rs.1/- as free of cost material to the customer.
Here, input credit on purchase, there are adjusting with other sales out put tax.
whether it is correct and if not, what is the procedure for free of cost sales.
CAclubindia
