23 July 2011
Dear Sir, Pls let me know in maharashta VAT will be charged by manufacturer also on transportation chgs / freight? if yes than under which clause & rule? One of our customer in Maharashta giving our payment by deducting tax on freight / transportation chgs. According to them their is not such rule, to charge vat on freight or tpt. chgs in maharashtra.
25 July 2011
Miss Reshma, Under all the VAT laws in India freight and transport charges are not liable for VAT.Please do not charge VAT on freight and tpt expenses.You will be penalised for it.Your customer is correct in not paying it.This is given in the VAT rules on computation of txable turnover. MJK
28 July 2011
Dear Sir, As per ur suggestion vat will not be charged on freight & tpt chgs in maharashtra. But one of our well wisher gave us detail of vat rule under which vat will be charged on freight & tpt chgs. here is that rule. Pls cross the same & give me proper guideline, I am confused now. Rule : (25) ?sale price? means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged. Explanation I.? The amount of duties levied or leviable on goods under the Central Excise Act, 1944 (1 of 1944) or the Customs Act, 1962 (52 of 1962) or the Bombay Prohibition Act, 1949 (Bom. 25 of 1949), shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of, the seller or the purchaser or any other person. Explanation II.? Sale price shall not include tax paid or payable to a 16[seller
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