obalreddy (accountant) (282 Points)
22 March 2011Dear All
My friend collection 4 % of vat on transport charges is it correct or not,please clarrified my dout
tax on ap vat
cost 15000
transport 650
vat @ 4% 15000+650=15650*4%=15650+626=16276
Thanking you
goreddy
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 22 March 2011
Under which state Act you are asking?
Under Karnataka VAT act defination of turnover includes "any sums charged for anything done by the dealer in respect of the goods sold at the time of or before the delivery thereof".
Which means if you are collecting transportation charges for delviery from customer needs to be included for the purpose of calculating tax
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 24 March 2011
In meaning of sales, transport charges is also included, so vat is applicable, if sale made is out of state then no vat is applicable on transport
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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