Is VAT / CST applicable on Freight Charges (To Pay Basis)???? In this case we have paid freight on behalf of our client & then he reimburses it to us. So should we charge VAT/CST, as applicable to the psrty on freight charges while raising invoice???
If you have raised invoice including freight charges as cost of material only then you have to pay VAT/CST. If you are showing freight charges separately in you invoice then freight amount will not attract VAT or CST.