Regarding charging vat on shipment and freight charges

Save Share

This query is : Resolved

shrikanth d.s. (Querist)

12 December 2015 Greetings of the Day experts!!!

My client is selling goods using Online e commerce agencies, such as flipkart and amazon.

My question is whether should he charge Vat on Shipment charges which he is collecting???

if Yes, Is it compulsory or is there any provision under KVAT to not to charge vat on shipment...

Thanks in advance

Regards,
Shrikanth

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

12 December 2015 U/s 2 (36) of the KVAT
DECIDES COURT LAW APEX COURT IN INDIA METERS LIMITED VS STATE OF TAMIL NADU (2010)34 VST (SC) : When the Transfer of Property or goods is to be at the place of buyer to which the seller is under obligation to transport goods, the expenditure incurred by the seller on the freight in order to carry of goods from his place to the place at which he is required under the contract to deliver would become part of the amount for which goods are sold by the seller to the buyer and fall within the scope of "Turnover"

Message likes : 1 times

shrikanth d.s.

shrikanth d.s. (Querist)

16 December 2015 So vat is applicable on shipment charges collected.. Am I right sir...

Thank you very much for your answer along with case law..

Regards,
Shrikanth

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now