Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Tax advocates call for input tax credit on promotional schemes

Author: IANS/Wednesday, June 6, 2018/Categories: TRACKING THE GST

Tax advocates call for input tax credit on promotional schemes

New Delhi - The All India Tax Advocates' Forum (AITAF) has urged the Union Finance Minister to allow assesses to avail input tax credit on sale transactions under promotional schemes like "buy-one-get-one-free" deals.

Under the Central Goods and Services Tax (CGST) Act, input tax credit will not be available for goods given as gifts or free samples.

"Withdrawal of input tax credit under the new GST regime will severely impact the sales and marketing cost of companies which follow the system of free samples or free supply strategy such as buy-one-get-one-free schemes," AITAF President M.K. Gandhi said in a statement here. 

The statement noted that prior to the introduction of GST, products given free of cost were not liable to VAT and the assessee was entitled to input tax credit.

"However, in the new GST regime, supply of goods by one person to another without consideration does not enjoy this benefit," Gandhi said.

"This would lead to increased cost of promotion and also pose a challenge as regards the valuation to be adopted for calculating GST on such goods," he added.

Print Rate this article:
No rating

Number of views (135)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free