Tnvat on sample

In Import Purchases, we dont pay Input Tax. But when we sell the goods in that state then we have to collect Output VAT (Provided if it is taxable ) . So in this case there is no consideration received as goods as the goods are distributed/ given as free samples to customers. So VAT does not attract if no consideration received, but if the dealer has taken input tax credit on the goods which are distributed as Free samples, then the dealer is not allowed to take input Tax Credit on It.He has to reverse it and becomes ineligible to take the credit.

Thanks

Cp Prasad.