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Discussion > VAT >

Octroi charges

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SAP Consultant

[ Scorecard : 42]
Posted On 10 November 2011 at 19:13 Report Abuse

Hello Expert,


What is the correct procedure to calculate Octroi in India (Mean Octroi calculates on basic value or (Basic value + VAT)+ Octroi)  i.e. 

Basic Price -100

VAT  4%      -4

Octroi 1%-     1   (Here octroi % or value will calculate on basic value)

Total  - 105







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CA Sripal Jain
Associate Finance

[ Scorecard : 709]
Posted On 10 November 2011 at 20:07


nooo octroi is calculated aftr taking CST or VAT or EXCISE into acoc*nt at the end it is levied not on basic amount


Harshal Fifadra
Chartered Accountant

[ Scorecard : 1245]
Posted On 10 November 2011 at 22:15

All the charges incured for making the sale are included in the SALE PRICE .VAT is charged on SALE PRICE Hence in your case the VAT would be on Rs.101 i.e. 4.04 . Total = 105.04 . However if the octroi charges are paid by the buyer then no VAT shall be payable on that amount . In other words the charges incurred for making the sale should be separately incurred by the SELLER ...

SAP Consultant

[ Scorecard : 42]
Posted On 11 November 2011 at 02:07

It means if A Purchaser have to pay octroi on purchase of goods then Octroi will calculate on Base value and No VAT will be charge on octroi in sort calculate will be i.e.

Basic price

+vat  (calculate on basic price

A)Subtotal (Basic price + vat)

B) Octroi (calculate on basic price)

Total (A+B)


Harshal Fifadra
Chartered Accountant

[ Scorecard : 1245]
Posted On 12 November 2011 at 14:01

Yes JEMSS you are correct ....

Total thanks : 1 times


[ Scorecard : 34]
Posted On 11 December 2012 at 12:53

Mr Jain thanks for the explanation but i would like to know the where in the octroi rules it is mentined this way of calculation  .. i would help me alot if you would guide me

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