Can Any one clarify, " Vendor has cahrged CST on freight amount. " Is this payable to vendor.
Raj Kuamr B (Sr Executive) (46 Points)
26 May 2011Can Any one clarify, " Vendor has cahrged CST on freight amount. " Is this payable to vendor.
praveen
(Chartered Accountant)
(6971 Points)
Replied 26 May 2011
I dont think CST is to be levied on freight charges. CST is only on the product cost and not on freight. However, VAT shall be levied in case of sale within the state on freight also as per the Karnataka VAT Act. Hope is the same in all the states.
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 27 May 2011
Definition of "sale price" under CST act excludes freight charges if the same is charged seperately in the Invoice.
So if the supplier showing the freight amount seperately in the invoice than CST is not applicable and hence need not to be paid.
Regards
Dayananda
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 13 June 2011
| Originally posted by : DAYANANDA K N | ||
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Definition of "sale price" under CST act excludes freight charges if the same is charged seperately in the Invoice. So if the supplier showing the freight amount seperately in the invoice than CST is not applicable and hence need not to be paid. Regards Dayananda |
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