Tax on Free Trade Samples

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2009 Free Trade Samples to Customers:
Whether CST or VAT is applicable on free trade samples?

If yes, under which section of CST act or Delhi VAT Act.

Kindly reply

Guest

Guest (Expert)

07 November 2009 If you Shown free trade samples as discount then VAT is not applicable.

For e.g Trader has sold 6 Ball pens @ 10 per pen to retailer but out of which 2 are sample pens

Then invoice should show

ball pen 6 @ 10 60 /-
Less : Discount 20 /-
Bal 40/-
Tax @ 4% 1.60
Total Pay40.60

By Showing this presantation you can reduce your quantity stock and save from VAT or CST Liability.

G.Ramesh

G.Ramesh (Expert)
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07 November 2009 Agree with Rakesh

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2009 If we are giving only free trade samples by issuing the invoices and nothing else.

Vishnu Saboo

Vishnu Saboo (Expert)
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11 November 2009 Where there is no considration, no sale tax would applicable.
considraton can be in form of Material against material, deffred payment, cash payment...etc.