Vat applicable in invoice

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 April 2012 if a sale invoice contains octroi - on which value vat is applicable ? -
on total value of sales (excluding octroi)
or
vat is levied on invoice amount (inclusive of octroi)

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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09 April 2012 some use value of product add postage,freight,labour etc then on gross amount calculate output vat...

some use value of product calculate output vat and then add. postage,freight,labour etc.

both can apply but its good to add. direct expense after output vat added.