Tax calculation given by vendor invoice

yes freight is included for the purpose of VAT.

but there is another problem i.e. how can he charge both cst and VAT.

if he is charging CST then he cannot charge the VAT.

Looking for more suggestion ...........................................

If he has bought the goods from the previous party by paying cst and tries to resell it he can include cst and charge vat from his seller.

 but the thing is that he cannot charge vat on the frieght charges.frieght charges are included in the invoice for collecting it from the vendor as per their agreement, vat cannot be charged on it, i think its a clerical mistake.

this should be the invoice.

VAT can be charged on freight if it is local (within the state ) . In your case the transportation charges are not local and hence VAT cannot be levied on it as per VAT LAW . I agree with the calculation of HEMANT SAI . For the buyer the purchase price is 6,12,510 and VAT @ 13.5 % should be 82,689 .

Here in this case under CST act ,the Transportation charges should not be included in the net/cost price of the commodity for the purpose of VAT calculation  ,under cst  a dealer can raise tax against Form 'c' OR with out form 'C' OR applicable rate of taxes under the respective State Acts, in continuation if any entry tax raised under ENTRY OF GOODS ACT ,by the other state ,then the respective buyer will adjust the sales tax  already paid on the said bill and remaining balance will be collected by the concerned assessing authority or check-post authority. More over few goods are exempted from payment of entry tax by the latest amendments.

G.S.CHANDRA SHAKER,

SALES TAX CONSULTANT.

@ harshal

Is it true that vat can be charged frieght if it is local?how do u say that?
r u saying about the vat charged by the trasporter?
because here the seller is collecting the frieght charges incurred by him from the vendor.

Yes VAT is to be charged on the freight if it is local ( within the state ) . As per VAT LAW all the expenses incurred by the seller for making the sales is to be included in the SALE PRICE except the Insurance COST and VAT is to be charged on the SALE PRICE . However the above law is not applicable in case if the freight or other expenses to make the sales are not local . 

here other expenses doesnt mean transporations expenses,it means the associated expenses in the production or preparing the product ready for sale....
in actual sellers will collect the transportation charges paid them and get that amount back ...in order to account that in the books they include the transportation charges at the bottom of the invoice and figures out the liability amount...

I am Suresh,

i want to take basic rate from total amount of 10792/- which is including Excise & Vat by calculator

can u tell the rate of excise and vat which is included