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
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.
CAclubindia
