Neel (Engineer) (28 Points)
13 May 2015Assume I am issuing a Retail Sales Invoice with following details:
Basic Item Cost: 1000/-
Shipping: 100/-
3rd party commission : 50/-
Packing charges: 20/-
I am already paying service tax on Shipping and 3rd party commission. My question is whether I should charge VAT on Basic item price that is 1000 or on total invoice value: 1000+100+50+20=1170/- ?
If bill is going outside Delhi but is a Retail Invoice, do same rules apply on CST as well(rate same as VAT) since B2C ?
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 14 May 2015
@ Mr. Neel
You have to charge VAT on Basic Item Cost i.e., Rs. 1000 , Not on total invoice value.
You can charge VAT on Cost of packing materials (Not on Packing Cost) if they were taxable under DVAT Schedules, otherwise you can't charge on packing material. But you should ensure that the packing materials on which you either claim input or either charge VAT must be shown in your Registration Certificate, if not then amend DVAT -07 or Revised DP-1.
Yes the same rules apply on CST as DVAT (except in case of Concessional Sales).
In Case of Concessional Sales, You must ensure proper sale procedure like with proper documents like Carrier Slip i.e., Movement of Goods must be there.
Regards
Piyush Tanwar
Semi Qualified CA
Taxation and Audit Consultant
Mobile : +91 9717468521
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