Tax on free sample
AJAY KUMAR
(Querist) 24 June 2016
This query is : Resolved
Sir,
If we have give any taxable goods to any shopkeeper on zero value (as a sample). than vat or cst applicable or not.
sanjeev kumar goel
(Expert) 25 June 2016
Dear Ajay if you have given any taxable goods to any shopkeeper free of cost as sample then there is no tax liability on such transaction whether in State or out side of State but with some conditions. Samples are always given on returnable basis so after some time you have to get back these samples from the shopkeeper and if you don't get back these samples then it will be the sole liability of the shopkeeper to pay due tax on these samples on full valve as he had got these samples free of cost so whole sale consideration is his profit and he has to pay tax on that. In this case you would not charge any tax either local or CST. For any clarification you may ask again.
sanjeev kumar goel
(Expert) 25 June 2016
Mr Rajendra K Goyal is your comment on above query that consult local tax consultant is an expert comment??
We should put here our expert opinion not layman answer. If we don't know about the solution then we should not intervene here on this platform as it is meant to solve the doubts and queries of the public through various experts not to just advice to go to local consultant.
I hope that in future you will give your expert opinion here.
Regards
