Vat on Freight chrgs

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NAVEEN KUMAR K (Querist)
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20 February 2009 A dealer has charged vat on freight chrgs included in the bill? Does the vat permits to levy on freight amount.

A. Sankaranarayana

A. Sankaranarayana (Expert)
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20 February 2009 Dear Mr. Naveen,

I assumed you are asking in Karnataka VAT,

The dealer is not permitted to claim deduction on Freight and Transportation charges while calculating taxable turnover.

Advance Ruling Authorities also confirmed the same view vide Order No.ALR.CR.37/06-07, dated 18th Dec. 2006.

But, in case of CST Sales, answer is different. Sec.2(h) permitts the dealer to claim exemption for Transportation charges.

A. Sankaranarayana
9448144025
asankaranarayana@gmail.com

NAVEEN KUMAR K

NAVEEN KUMAR K (Querist)
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21 February 2009 Thank you for your kind information sir.

regards
navin