Karnataka VAT

This query is : Resolved 

29 October 2010 Dear Experts

Should suppliers charge VAT (Karnataka VAT) on freight amount charged/added in his material bill?

if yes, please also inform the relevant circular no. if any.


29 October 2010 In all the states , if VAT is charged on bill , VAT will be applicable. VAT is charged on invoice value what ever.

31 October 2010 VAT is charged on sales as defined in the Sale of Goods Act which presently includes works contract If freight is added to the value of the goods sold as per the bill/invoice then VAT will apply.It is advisable not to include freight in the bill/invoice and to charge it separately to avoid the confusion




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