Is VAT applicable on Octroi charges paid
This query is : Resolved
10 December 2007
When we pay our vendors for transportation of goods, vendor charges his service charge + octroi. VAT is applicable for the sevices provided, but is it applicable on Octroi Charges too...Please help....
CA. O.P. Agarwalla
(Expert)
10 December 2007
Your question is not clear. No VAT is applicableon service provided (normally).
If your vendor is charging cost of delivery (transportation)charges separately, I think (subject to the definition of sales price given in your State VAT Act)as per Assam VAT Act and as per CST Act, no VAT is leviable on such delivery cost. However, if it is a part of yur sales price, the whole amount will be taxed.
If your vendor is charging cost of delivery (transportation)charges separately, I think (subject to the definition of sales price given in your State VAT Act)as per Assam VAT Act and as per CST Act, no VAT is leviable on such delivery cost. However, if it is a part of yur sales price, the whole amount will be taxed.
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