Jemss (SAP Consultant) (42 Points)
10 November 2011Hello 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
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 10 November 2011
nooo octroi is calculated aftr taking CST or VAT or EXCISE into acoc*nt at the end it is levied not on basic amount
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 10 November 2011
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 ...
Jemss
(SAP Consultant)
(42 Points)
Replied 11 November 2011
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)
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 12 November 2011
Yes JEMSS you are correct ....
CA. Bhavik P. Chudasama
(Practice)
(3669 Points)
Replied 11 December 2012
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
Bhappy FOR EVER
(1 Points)
Replied 10 October 2015
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???
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