Vat on handling charges

Others 745 views 3 replies

My Supplier Is Charging VAT on Handling Charges is it Correct ? Please reply  

Replies (3)
He is not correct..........

Please narrate with an example so as to give the correct reply.  

VAT is payable on sale of goods and determining the sale price is crucial to arrive at the taxable turnover liable for VAT. All the State Acts do provide for deductions from total turnover viz., discounts etc., With this background consideration relatable to goods upto the time when goods are sold (till transfer of property in goods) collected by the seller for contract of sale are to be treated as part of taxable turnover.

 

In the case on hand, if handling charges collected by the seller before transfer of property, value of such charges will form part of taxable turnover and if such charges are not relatable to goods which are sold & if these services are provided after sale, handling charges will not form part of taxable turnover. 

 

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details