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Discussion > VAT >

VAT ON FREIGHT AMT

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IPCC, Asst Manager


[ Scorecard : 108]
Posted On 25 July 2008 at 11:15 Report Abuse

Dear Sir,

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,

Santosh

 


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Sathishkumar
Proprietor


[ Scorecard : 66]
Posted On 25 July 2008 at 14:00

Originally posted by :Santosh
"

Dear Sir,

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,
Santosh
 

"


 





Santosh Shetty
IPCC, Asst Manager


[ Scorecard : 108]
Posted On 25 July 2008 at 15:57

Originally posted by :Sathishkumar
"


Originally posted by :Santosh


"

Dear Sir,
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,
Santosh
 

"thank you very much sir




 
"


 




C.A Alok Mukherjee
service


[ Scorecard : 459]
Posted On 29 July 2008 at 17:48

If you read the definition of "sale price" as defined in your State VAT Act, it is clearly stated that VAT will be charged on this amount. It is not relevant whether you show it separately or not. Before the introduction of VAT, "sale price" is to include essentially the pre-delivery charges. When it was post delivery, there would not be ant tax. The same is still valid for CST. But, VAT Act, is specific about freight charges.




Austin Strickland
MM


[ Scorecard : 22]
Posted On 17 August 2009 at 04:07

Originally posted by :Santosh
" Originally posted by :Sathishkumar
"

Originally posted by :Santosh

"
Dear Sir,
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 ocean 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,
Santosh
 
"thank you very much sir"
"

 

hey thanks for the information..

really appreciate..




MAHESH
ACCOUNTANT


[ Scorecard : 773]
Posted On 17 August 2009 at 14:17

I agree with Mr. Satishkumar, go ahed




Edinburg
SEO


[ Scorecard : 22]
Posted On 29 June 2010 at 09:57

By defining Freight Charges as an inventory item enables the AutoAccounting to treat this item as a Freight item and use freight Account rather than Revenue Account for the Freight Charges. If you are not implementing Oracle Order Entry than you can always pick this new item as a line and Oracle Receivables will calculate the Tax on this freight item as it does for any other item. Intermodal Services...




inder gupta
accountant


[ Scorecard : 41]
Posted On 02 November 2010 at 17:03

on how much amount of sale the vat amount should shown seprateley 

 

 

 

 

 




inder gupta
accountant


[ Scorecard : 41]
Posted On 02 November 2010 at 17:06

If somebody have a formate of hotel industry . Please Provide me. I will very thankful




Ravi Prasad
Self employed


[ Scorecard : 148]
Posted On 08 November 2010 at 18:25

Please refer to the latest Supreme Court judgement in India Meters case. The freight and insurance are part of the sale price and hence VAT is leviable on the same, whether it is charged separately or not. Hence please read again.



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