is VAT applicable on freight charged

is VAT aplicable on freight , installation and commissioning,

Replies (26)

no its only applicable in terms of actual purchase price of the goods..it excludes every other expenses incurred to bring it to the place of production and its installation

yup... nitesh is right.

dear

when the freight ,  packing & forwarding & any charges saw in the invoice then the VAT applicable (Charged) as per Gujarat VAt

As per Karnataka Vat Act Taxable value of sales includes freight charges also.

VAT IS NOT APPLICABLE ON FREIGHT, IT IS APPLICABLE ON PURCHASE.

Nitesh is right

vat is consumption tax/.....

n state level ..

so wht is the situation of one state may b not the other

so u hv to consider ur state level vat for the decision

It differs as per  VAT Act of every State.

Vat is applicable on Frieght (cartage) but new circular comes on service tax which create the tax liability for freight & cartage if vat is not paid on it. if vat is applicable on it then no need to pay service on frieght and cartage but if service tax is applicable on it then no vat is applicable.

vat is not applicable on installation and comissioning.

Vat is always payable on the value of the material purchase.as fright and other expenses is not realting to the mfg of product so VAT will not be cahrged on the same purchased material..

Thanks & Regards

Gaurav

Vat is applicable on freight only when freight should be charged in the invoice other wise not.For Eg. A sells goods worth Rs.10000 & charged Excise of Rs.824 also charged freigh on it amounting Rs.550. So on total amount Rs.11374 Vat will be charged.

Ok

r u satisfied with this

If the purchase price is inclusive of freight then VAT is payable on Freight amount.

This depends upon the contract say in the contract it is agreed that the supplier shall deliver the goods to the project site and then mention the price of the goods, hence it is inclusive of freight and therefore VAT is payable.

however in the other case if debit note is issued by supplier then VAT is not applicable on freight.

Dear Sir,

As per Orissa sales tax act , can vat applicable on packing & fowarding charges.

Thanks & Regards

Bijaya.

Dear Sir,

I am in Orissa, I want to know can I paid Entry Tax when I purchase some material from a manufacturer directly as per Orissa Entry Tax Act.

bijaya. 

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