vat tax on free of sample material paid to customer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2016 Sir,

We have paid Free sample of material to customer, We have also shown in sale bill for free sample given. We have not collected any amount from free of sample only quantity of material given is mention in sale bill Whether we have to paid vat tax on free sample also nor not.

please suggest

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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02 February 2016 FREE GOODS (SAMPLE) ISSUED WITHOUT CONSIDERATION IS NOT TAXABLE.
In case of samples issued by the assessee as a part of promotion program, first of all there is no buyer and seller, there is no transfer of property in goods and there is no consideration. When none of the conditions are fulfilled, there is no sale as per Sales Tax/ Acts.