Job
40 Points
Joined November 2007
If the purchase price is inclusive of freight then VAT is payable on Freight amount.
This depends upon the contract say in the contract it is agreed that the supplier shall deliver the goods to the project site and then mention the price of the goods, hence it is inclusive of freight and therefore VAT is payable.
however in the other case if debit note is issued by supplier then VAT is not applicable on freight.