Dear Sir,
how to prepare invoice when we give free goods as sales promotion scheme, for e.g when a customer buys 500 pcs, we give them 20 pcs free.
Also do we need to charge vat on the free goods?
pls advice.
regards
gautam
Menu
vat on free goods
Replies (1)
Dear Gautam ,
Free goods supplied for sales promotion doesnot attracts Vat, if you charged or received any sum from sale of those goods then Vat will attracts in rule itself its mentioned that taxable turnover doesnot include free samples or discounts(as normal Practice) .so for raising invoice charge Vat on selling goods only disclose seperatley the Free samples and do not charge Vat on samples.
Recent Topic
- EPF Withdrawal taxation
- While e filing otp not generating
- INCOME FROM CLOSING OF NSS -1992 -EXEMPT UNDER W
- GPF AND COMMUTED PENSION RECEIVED
- How do I choose the correct trademark class? Can I
- Error in totalling salary amount in AIS
- Client consent under DPDPA: Is client sharing PAN,
- TDS MISMATCH
- Rebate on other income even if LTCG is above my 12
- Need CA to certify shareholding pattern.
Related Topics
CAclubindia
