Vat covered only the cost of the goods sold not to freight, packing etc.,
Therefore the freight and packing charges not included in the vat. This may shown in the invoice ofter the vat amount in seprately.
The freight and other charges are other income only.
One of my client is charging MVAT on freight charges in the tax invoice. I have some confusion - should we charge VAT on freight amt which we are showing seperately in the same Invoice? Also under which gruoup will it (freight & packaging) come I mean under Sales account or direct incomes.
Awaiting for your reply.
Thanks & Regards,