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Freight bill confirmation

Sharan (Student MBA) (42 Points)

02 December 2013

We are sending material from factory to Phoenix Warehousing Delhi but Billing address is Pune,However total value exceeds the salesvalue(u/s 4a) if we includes freight, so need clarification for the following: 1. Can we raise a separate freight bill on customer for the material supplied 2. Billing address is Pune and the delivery address is New Delhi, 3. If we could able to raise the freight invoice will it attract service tax? 4. If service tax is applicable, can we take the credit of the same? 5. Can we raise the freight bill from w/h (excise invoice) or need to raise a separate VAT invoice? Thanks in advance

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P.Bashista (Advocate) (367 Points)
Replied 02 December 2013

Point wise reply to your query:

1. Can we raise a separate freight bill on customer for the material supplied

Ans. 1. When the place of removal is the factory gate then the freight charges will not be a part of the assessable value. So show the freight charges seperately in the invoice.

2. Billing address is Pune and the delivery address is New Delhi,

Ans.2 . In the bill mark the Buyer as Pune address and in the Consignee as Delhi address.

3. If we could able to raise the freight invoice will it attract service tax?

Ans.3. No seperate freight invoice is required to be raised but yes the service tax is payable on the freight.

4. If service tax is applicable, can we take the credit of the same?

Ans. 4. Yes if you pay the service tax you can take the credit.

5. Can we raise the freight bill from w/h (excise invoice) or need to raise a separate VAT invoice?

Ans. 5. Already answered in answer no. 3.

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