How to compute vat

Hi,wanted to know in invoice of dealers/Distributors where charges for transportation+loading/unloading and other chgs hereinafter called as freight is added in the invoice on which service tax is required to be paid whether VAT is calculated on total value i.e value of goods+excise if any+freight+ST

or

value of goods+ excise if any+freight

so the question is,

is VAT Calculated on ST as well??

Replies (7)

Yes.... u should take full value of freight 

Yes take full value of freight

BUT VAT AND ST ARE EXCLUSIVE TAXES .....SO ACC WILL IT NOT BE THAT IF ST IS APPLICABLE ,NO VAT AND VICE VERSA

Can u levied service tax on freight 

YES AS TRANSPORT IS UNDER REVERSE MECHANISM AND SO ST PAYABLE BY DEALER AND WILL BE CHARGED TO THE NEXT LEVEL OF CONSUMER/DEALER AND THEREFORE ADDED TO INVOICE.....BUT MY Q IS, IS VAT PAYABLE ON ST WHERE BOTH THESE TAXES ARE EXCLUSIVE

if you levied service tax on frieght, then you will calculation of vat only on materials.  

Thank u mam. 

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