Vat on transportation

we supplied product to a party in FY 2011-12 . although the transportation was carried out by a third party, the customer wanted us to charge transportation element in the invoice itself for convenience purpose .no profit was generated out of transportation activity. there is no written agreement of this, howevercustomers PO mentions that we have to transport goods to their premises.

my questions are:

1) are we liable to charge vat on transportation in this scenario?

2) if yes, can we claim vat from customer now?

Replies (4)
When freight charges are shown seperately, VAT is not collected. If vendor has fixed his rate after considering freight element also just like material or labour or overheads, VAT is calculated on total rate..

In my View VAT is levied on goods, so as transportation is a service & not goods VAT is not applicable.

In most of the states vat is to be levied on transportation also,irrespective of whether shown sepeartely or not.......mjk

Agree With Mr MJK Sir,

When we Received Invoice From Maharastra Vat is not Charged but from West Bengol Vat is Charged..

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