25 January 2014
Sir We are a Manufacturer of Electrical Insulators and we are Supplying Electricity Board through Tender System. we we supply the material to Board we Billed with Basic Rate + Excise duty + Freight Charges + Vat = Total Amount
in Above Case we should pay excise duty on Freight charges or not. Our Delivery Terms is FOR to All Stores of Board.
26 January 2014
You have not charge the freight in assessable value. You have to charge the separete freight charges. You are liable to pay service tax on freight charge from the buyer but you can not avial the cenvat credit. If freight charges will included in the assessable value then you can take the cenvat credit.
CAclubindia
