28 July 2011
Dear Sir, As per one of our expert suggestion vat will not be charged on freight & tpt chgs in maharashtra. But one of our well wisher gave us detail of vat rule under which vat will be charged on freight & tpt chgs. here is that rule. Pls cross the same & give me proper guideline, I am confused now. Rule : (25) ?sale price? means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged. Explanation I.? The amount of duties levied or leviable on goods under the Central Excise Act, 1944 (1 of 1944) or the Customs Act, 1962 (52 of 1962) or the Bombay Prohibition Act, 1949 (Bom. 25 of 1949), shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of, the seller or the purchaser or any other person. Explanation II.? Sale price shall not include tax paid or payable to a 16[seller
30 July 2011
As per section 2 (25) of MVAT, Freight/ and octroi will be part of sale price if the sale is door delivery contract. If the same is ex-seller’s place and the above expenses are received as reimbursement then it will not form part of sale price. However, freight separately charged on interstate sale will not form part of sale price, because the definition of sale price under the C.S.T Act specifically excludes freight charged separately.
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