we are selling RMC whose selling price is 3500/- per cubic metre. It includes an amount of Rs 600/- towards transport. Now we are paying vat @ 14.5% on 3500 i.e 507.5. At present i am not showing transport charges separately in the invoice.
How I can reduce my VAT payment?
ONLY WAY TO REDUCE VAT IS TO SHOW THE TRANSPORTATION CHARGES SEPERATELY IN INVOICE.
IF U R ALREADY ISSUED THEN CORRECT THE INVOICE AND SEND AGAIN IN REVISED FORMAT.
| Originally posted by : Rajnikant Vadigoppula | ||
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ONLY WAY TO REDUCE VAT IS TO SHOW THE TRANSPORTATION CHARGES SEPERATELY IN INVOICE. IF U R ALREADY ISSUED THEN CORRECT THE INVOICE AND SEND AGAIN IN REVISED FORMAT. |
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from the begining we are raising the invoice with out showing transport charges separately. But if we show transport charges separately, VAT payable by us will come down drastically then if the CT dept raises any objection then how i can face them i.e on what basis
from the begining we are raising the invoice with out showing transport charges separately. But if we show transport charges separately, VAT payable by us will come down drastically then if the CT dept raises any objection then how i can face them i.e on what basis
no one will rise quetion if u explain them correctly
yes you will explain that vat is not chargable on freight charges
CAclubindia
