VAT on Freight charges

This query is : Resolved 

31 May 2011

Is VAT / CST applicable on Freight Charges (To Pay Basis)????
In this case we have paid freight on behalf of our client & then he reimburses it to us. So should we charge VAT/CST, as applicable to the psrty on freight charges while raising invoice???

Hitender Gaur (Expert)
01 June 2011

If you have raised invoice including freight charges as cost of material only then you have to pay VAT/CST. If you are showing freight charges separately in you invoice then freight amount will not attract VAT or CST.

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