Karnataka state vat act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2014 Dear Friend
My client having depot at Bangalore and having manufacturing unit at Pondy. Now we are transferring goods from Pondy to Bangalore through form F and then we are selling local market with applicable local tax. While making local sale my client having the following format of Invoice:

Basic Value of Material 100
ED 12
Total for Sale Tax (A) 112
ST @ assume 14% on A 15.68
Total 127.68
Add:
Freight 10
Insurance 5
Total Value of Invoice 142.68

Now department asking to pay K VAT for entire amount means (100+12+10+5)x 14%

Whether this view is correct or can i argue for exclude freight and Insurance

CA SENTHIL

Damodaran

Damodaran (Expert)
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09 August 2014 VAT should be calculated on selling cost ( including insurance, freight etc) which is captured in the tax invoice,
No need to pay VAT on freight, If freight & insurance are not charged in the tax invoice
Pls refer the case between Yamaha motor vs up commercial tax.