sales tax provision for sample goods given to customer

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Whether sales tax to be paid on sample given to customer free of cost, if yes than

If sample goods are given to customer than what should be the invoice value that is whether we should include sales tax in it or issue invoice with zero value.

please assist

Replies (2)

/forum/free-sample-24101.asp

 

alert

you are not eligible for input credit for free samples.

samples given to customers free of cost do not fall under the definition of 'sale' under VAT.

Hence not liable to VAT.

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