Can any one tell me the chargeability of VAT and CST for the following:
Value of goods = Rs.10000
Freight = Rs.1000
Total purchase cost =Rs.11000
Now the question is to take the credit of vat or cst on 10000 or 11000 (Incl freight)..
If possible specify act for the above chargeability..
Pls do the needful.. Thank you
The value of goods of Rs. 10,000.00 will attract VAT or CST.
The value of Freight charges of Rs. 1,000.00 will attract Service Tax.
bharat khurana is right, amount of freight is relevent for accounting purpose, not for taxation
| Originally posted by : D. DHANANJAYA | ||
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Can any one tell me the chargeability of VAT and CST for the following: Value of goods = Rs.10000 Freight = Rs.1000 Total purchase cost =Rs.11000 Now the question is to take the credit of vat or cst on 10000 or 11000 (Incl freight).. If possible specify act for the above chargeability.. Pls do the needful.. Thank you |
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where to include freight or not depends on the terms of agreement.if it is free on board(FOB) sales,then u need not include freight but where as incase of delivery at the place of buyer u have to include freight
vat will be levied on rs 10000
cst will be levied on rs 1000
Sir Ji,
Vat charged on actual purchase or sales amount not any other included direct exp. So vat charged on 10000.00 rs not 1000.00. Same as its ITC (if purchase proceeds) claimed for the period. If this purchase from unregistered then purchaser deposited its VAT amount (as the case may be) then he claimed OR adjust ITC against sales proceed.
vat or cst is chargable on sales amount not on freight service tax chargable on frieght.
Dear Sir,
The liability of vat/cst lies on the value of goods & not on the value of freight. refer sec. 2 (g) of cst act,1956 and sec 2 (zc) of Dvat Act,2004.
Vat on Rs 10000
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