Freight
This query is : Open
24 July 2012
Dear Experts
We are charging freight from our customers for the material supplied to them. This freight may be more than or less than the actual amount incurred by us for transporting the goods to customer.
Please guide me w.r.t. the applicability of taxes on freight...VAT or Service Tax.
Note:Goods are sent by Courier as well as road transport.
rgds
Pankajj Arya
We are charging freight from our customers for the material supplied to them. This freight may be more than or less than the actual amount incurred by us for transporting the goods to customer.
Please guide me w.r.t. the applicability of taxes on freight...VAT or Service Tax.
Note:Goods are sent by Courier as well as road transport.
rgds
Pankajj Arya
24 July 2012
First, their is no VAT on freight , if charged separately. Secondly, the service tax is applicable on service of Goods Transport Agency, so the Service Tax would be applicale on the bill amount of the Transport agency and not on your inflated freight value.
25 July 2012
Dear Sir
Thanks for the prompt reply. The reply suits me & will solve my problem....
I will be grateful if you can share the relevant section, case law supporting the above view
Thanks & regards
Pankajj Arya
Thanks for the prompt reply. The reply suits me & will solve my problem....
I will be grateful if you can share the relevant section, case law supporting the above view
Thanks & regards
Pankajj Arya
26 July 2012
for Service Tax See NN 26/2012, which talk about services of goods transport agency and for Sales/Vat read definition of Sale u/s 2(h) of CST Act.
29 July 2012
Mr Pankaj Arya,
Sorry,Iwould like to differ a bit,freight is not exempt from VAT in most of the States. You have to add freight to the price of goods while collecting VAT/CST....MJK
Sorry,Iwould like to differ a bit,freight is not exempt from VAT in most of the States. You have to add freight to the price of goods while collecting VAT/CST....MJK
30 July 2012
Sir
Thanks for the update.
To my understanding, in Delhi VAT, it is excluded, i.e. no VAT on freight. Silimlarly for CST, it is excluded from the definition of Sales....
I know that in some other states, VAT is charged on Freight.
Can u please share the name of the states where VAT is charged on freight. We have offices in many states...
Many Thanks...
Pankajj Arya
Thanks for the update.
To my understanding, in Delhi VAT, it is excluded, i.e. no VAT on freight. Silimlarly for CST, it is excluded from the definition of Sales....
I know that in some other states, VAT is charged on Freight.
Can u please share the name of the states where VAT is charged on freight. We have offices in many states...
Many Thanks...
Pankajj Arya
30 July 2012
Mr Pankaj Arya,
For example, Karnataka. I have seen in some other state Acts also. Later I will inform you....MJK
For example, Karnataka. I have seen in some other state Acts also. Later I will inform you....MJK
31 July 2012
Thanks Sir...a comprehensive list of all such states will help me a lot.. please do send me the same...
regards
Pankajj arya
regards
Pankajj arya
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