Legal Question in Business Law in India

17.05.2012

Dear Sir / Madam,

Under current VAT regulations, goods used for promotion and advertising purposes but not in compliance with regulations on promotional activities are still required to declare and pay VAT as in the case of normal sales.

To reiterate this point, on 21 March 2012 the GDT issued Official Letter No. 997/TCT-CS asserting that when an enterprise uses goods for promotional and advertising purposes which

is not in strict accordance with the requirements of Decree No. 32/1999/ND-CP (for periods prior to 2007) and Decree No 37/2006/ND-CP (from 2007 onwards), it must declare and pay

VAT for those goods.

You can mail me for any further on-line advice at [email protected]

Regards,

MLM does not attract VAT since it is not considered as sales.