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Freight on sales

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(Querist)
20 July 2009
A company selling goods to their customers recovers freight through their invoice at a specified rate.(ie Rs per quantity supplied). Whether the company is liable to pay VAT on the freight amount?? The company now pays VAT on the sales amount net of freight. Is this correct??? Is the company liable under Kerala VAT and Karnataka VAT sice the company has branches in both the states??
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CA. BIJENDER KR. BANSAL

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CA. BIJENDER KR. BANSAL (Expert)
20 July 2009 As per Excise , Excise duty is paid on differnce of Freight Recovered and Freight paid agaisnt it.
As per UP VAt , there is no need to charge vat on freight.
It seems that company is correct , Vat is to paid on sales amount net of freight.
If sale bill is issued from Kerala then Kerala vat is appliable, if from Karnataka, then Karnataka vat.
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CA. BIJENDER KR. BANSAL

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CA. BIJENDER KR. BANSAL (Expert)
20 July 2009 As per Excise , Excise duty is paid on differnce of Freight Recovered and Freight paid agaisnt it.
As per UP VAt , there is no need to charge vat on freight.
It seems that company is correct , Vat is to paid on sales amount net of freight.
If sale bill is issued from Kerala then Kerala vat is appliable, if from Karnataka, then Karnataka vat.
Profile Image

CA. BIJENDER KR. BANSAL

Profile Image

CA. BIJENDER KR. BANSAL (Expert)
20 July 2009 As per Excise , Excise duty is paid on differnce of Freight Recovered and Freight paid agaisnt it.
As per UP VAt , there is no need to charge vat on freight.
It seems that company is correct , Vat is to paid on sales amount net of freight.
If sale bill is issued from Kerala then Kerala vat is appliable, if from Karnataka, then Karnataka vat.
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