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plz solve my query

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This query is : Resolved

irfan (Querist)

12 February 2011 i am working in small company

i have a query

we are purchasing something

party is giving us bill adding transportation charges with the ammount and then add VAT on the Total Amount

this bill is wrong or right

i want to know

For Exemple

purchase Amt 100000
Transpotation 3000
VAT on total 1030
total bill Amt 104030

this is correct bill or not tell me sir

because Vat is on Purchase and not on transportation

so on purchase amt 5% VAT is applicable

and then after applying Vat transportation charges will be applicable

right na sir

plz explain me

Prashant

Prashant (Expert)

14 February 2011 It is Right as I know.
Because Department consider that it is shown separate for purpose of saving VAT.
So department consider transportation + sales value to calculate VAT

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