Addition of freight

This query is : Resolved

MANGESH SHANTARAM MOHITE (Querist)
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19 July 2012 Dear expert,

Kindly suggest me whether in invoice i can charge vat on freight charges.

Its urgent

Please help me

RENGARAJ R.K

RENGARAJ R.K (Expert)
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20 July 2012 Kindly mention your state of operation to answer your query.

In general, VAT is excluded on freight charges.

MANGESH SHANTARAM MOHITE

MANGESH SHANTARAM MOHITE (Querist)
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21 July 2012 Dear expert.

my company state of operation manufacturing concern.

MANGESH SHANTARAM MOHITE

MANGESH SHANTARAM MOHITE (Querist)
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21 July 2012 Dear Expert

Also suggest that on packing charges we can charge excise duty and vat .

RENGARAJ R.K

RENGARAJ R.K (Expert)
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21 July 2012 As per the central excise valuation rules (transaction value -sec 4) the cost of packing charges is to be included and central excise will have to be paid. Once excise is charged, VAT has to be collected for that value also. Please see the following rules given by the Dept.

(iv) Inclusion in the price

Some of the expenditures like packing charges, designing and engineering charges, handling charges incurred within the factory are required to be included in the price if they are not already included.

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