MP VAT - VAT ON LOGISTIC/FREIGHT INWARD

a registered dealer of CAR/Motor Cycle purchase Car/MC from Out of Madhya Pradesh, in there purchase Invoice Freight / Logistic Charges add in bill.

Now At the time of sale can he Intered Logistic /Freight charges at the end of bill i.e. not pay VAT on above charge.

 

Exemple

 

 

  Purchase Bill          
             
             
  Product Qty Rate Amount    
  Motor Cycle 55 30000 1650000    
             
  ED   8.24% 135960    
             
  Sub Total     1785960    
             
  CST   @ 2% 35719    
             
  Sub Total     1821679    
             
  Freight Per M/C 550 30250    
             
  Insurance Per M/C 10 550    
             
  Total Bill Amount     1852479    
             
             
  Part II : now he paid ET on above 18525    
             
  Total Cost     1871004    
             
  Cost Per M/C     34018    
             
             
             
             
  Sales bill of Dealer   (1st Type)    
             
  Motor Cycle 1 35200 35200    
             
  Add : MP VAT @ 12.5%   4400    
             
        39600    
             
  Add : Logistic Charges   560    
             
        40160    
             
             
             
             
  Sales bill of Dealer   (2nd Type)  
             
  Motor Cycle 1 35698 35698    
             
  Add : MP VAT @ 12.5%   4462    
             
        40160    
             
             
             
             
             
  VAT Tax saving Rs. 62/- in second type bill    
             
  Can it is correct          
Replies (1)

Your Second bill is correct because logistic charge is an direct expenses and direct effect to purchase value , and  amount of vat payable is difference of net value of purchase cost and net value of sales .

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