Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Is delhi vat applicable on shipping, commission, packing etc

919 views

Save Share

Join Us Follow Us Add as Source

Neel

Engineer

21 Points Posted on 13 May 2015

Assume I am issuing a Retail Sales Invoice with following details:

Basic Item Cost: 1000/-

Shipping: 100/-

3rd party commission : 50/-

Packing charges: 20/-

I am already paying service tax on Shipping and 3rd party commission. My question is whether I should charge VAT on Basic item price that is 1000 or on total invoice value: 1000+100+50+20=1170/- ?

If bill is going outside Delhi but is a Retail Invoice, do same rules apply on CST as well(rate same as VAT) since B2C ?

Replies (1)

Piyush Tanwar

Assistant Manager - Accounts

1080 Points Posted on 14 May 2015

@ Mr. Neel

You have to charge VAT on Basic Item Cost i.e., Rs. 1000 , Not on total invoice value.

You can charge VAT on Cost of packing materials (Not on Packing Cost) if they were taxable under DVAT Schedules, otherwise you can't charge on packing material. But you should ensure that the packing materials on which you either claim input or either charge VAT must be shown in your Registration Certificate, if not then amend DVAT -07 or Revised DP-1.

Yes the same rules apply on CST as DVAT (except in case of Concessional Sales).

In Case of Concessional Sales, You must ensure proper sale procedure like with proper documents like Carrier Slip i.e., Movement of Goods must be there.

Regards

Piyush Tanwar

Semi Qualified CA

Taxation and Audit Consultant

Mobile : +91 9717468521

Email : capiyushtanwar91 @ gmail.com; imcoolpiyush.tanwar @ gmail.com