VAT

Pavan (CA) (76 Points)

22 December 2010

In a Tax Invoice when goods are sold by a Company, it is collecting a fixed amount towards Freight & Courier Charges.

This is also displayed in the Tax Invoice as a separate line item.

Is this amount liable for Sales / Service Tax ?

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 22 December 2010

Originally posted by : Pavan
	In a Tax Invoice when goods are sold by a Company, it is collecting a fixed amount towards Freight & Courier Charges. This is also displayed in the Tax Invoice as a separate line item. Is this amount liable for Sales / Service Tax ?

mentioning such items in "tax invoice", which are non vat just lead a confussion in turnover and return filing, as tax invoice is made for taxable items only.
if u take these freight under turnover then taxable, if shown in proper place at return and deducted, then u can claim deduction, but in total its confussing, coz total turnover indicates the value including freight. so the assessing officer is bound to take these as taxable.
use debit notes for such transactions.