Dear Experts,
Please provide your view on below points W.r.t VAT Payment:
Example:
Cost of goods: 100
Normal Sale Price: 150
VAT @ 5% on above 150*5% = 7.5
Net Receivable from Customer= 157.5
Here we will pay Rs.7.5/- as VAT to the government
If THE SAME PRODUCT IS SOLD UNDER DISCOUNT SCHEME - - say 20% Discount
Cost of goods: 100
Normal Sale Price: 150
Discount @ 20% 150*20% = 30
VAT @ 5% on above (150 - 30) *5% = 6
Net Receivable from Customer= 126
Here we will pay Rs.6/- as VAT to the government
My question is that the VAT should be paid on the Normal Sale Price of the product or Discounted Price of the product?
If we give some product as free of cost to some customer then we have to pay VAT on such product? If yes? Then on what amount (Cost or normal Sale price)?
Here we are not giving goods to customers as FREE SAMPLE or SALES PROMOTION or AS GIFT…
Thanks in advance...
CAclubindia
