Hello Expert,
What is the correct procedure to calculate Octroi in India (Mean Octroi calculates on basic value or (Basic value + VAT)+ Octroi) i.e.
Basic Price -100
VAT 4% -4
Octroi 1%- 1 (Here octroi % or value will calculate on basic value)
Total - 105
nooo octroi is calculated aftr taking CST or VAT or EXCISE into acoc*nt at the end it is levied not on basic amount
All the charges incured for making the sale are included in the SALE PRICE .VAT is charged on SALE PRICE Hence in your case the VAT would be on Rs.101 i.e. 4.04 . Total = 105.04 . However if the octroi charges are paid by the buyer then no VAT shall be payable on that amount . In other words the charges incurred for making the sale should be separately incurred by the SELLER ...
It means if A Purchaser have to pay octroi on purchase of goods then Octroi will calculate on Base value and No VAT will be charge on octroi in sort calculate will be i.e.
Basic price
+vat (calculate on basic price
A)Subtotal (Basic price + vat)
B) Octroi (calculate on basic price)
Total (A+B)
Yes JEMSS you are correct ....
Mr Jain thanks for the explanation but i would like to know the where in the octroi rules it is mentined this way of calculation .. i would help me alot if you would guide me
PLEASE TELL ME WHICH areas are added??
How about Bangalore ? is there any octroi charges ?
is there any website to know more ??? mainly for kind of proudct they chage octroi???
help us
CAclubindia
