One of our vendor has raised Sales Invoice on us in which he included the freight charges. And on net amount he charged VAT ?
As per our Purchase Order terms freight is on our account.
Shall we book the invoice with full amount?
Thnx
Amit
1 Replies
LAXMIKANT JAIPURKAR
(Practicing Company Secretary/Tax Consultant)
(403 Points)
Replied 10 March 2009
Invoice may be booked for full amount. However, the VAT is not chargeable on freight amount. After basic price of goods, vat is to be charged at appropriate rate and thereafter freight to be charged as extra. Freight do not attracts VAT.
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