08 August 2011
Dear Sir, We are mfrs.unit & as per one of our expert 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. I am confused, which rule I have to follow? Pls Suggest.
Giving hre brief of that rule.
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.
If Amount of freight is shown separately in Bill/Invoice than NO Vat is payable on Freight/Transport charges. But if you include the amount of Freight and Transportation in valuation of goods then VAT is payable on whole amount/invoice amount. so use the following pattern to avoid the VAT on Freight/transport charges.
Goods Value Nos. X price per unit = Rs. VAT on above % = Rs. Tatal = Rs. Add: Freight + Transportation = Rs. Gross Total = Rs.
CAclubindia
