Input reversal on free goods

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
21 January 2012 I am supplying 5 Nos free goods along with 25 Nos of my product and mentioning the same in the invoice as well.
Should the input be reversed on materials used in the manufacture of the free goods on a proportionate basis?

30 January 2012 In my opinion there is no requirement of reversal of VAT input tax. The reason being the sale value shall be treated as the consideration for the goods sold as well as goods given away as free of cost.. that shall be the total consideration which is taxable.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries