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Whether freight is included in assessable value under vat

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Rahul KhandelwaL

Mngt Trainee

23 Points Posted on 16 November 2013

Dear Experts,

We have Depots in Maharashtra and across 5 states in India. Viz.

1. Karnataka

2. Tamil Nadu

3. Haryana

4. Andhra Pradesh

5. Gujrat

And also, we are involved in various inter-state sales too.

Now my question is, whether freight, under these various state laws and CST, shall be included in Assessable Value for computaion of Vat and CST?

Please provide answer for each case separately if you can with reasonable justification.

Thank you very much in advance for the answer!!!!!

Replies (1)

Chandra Sekhar P

G.M. Finance & Accounts

110 Points Posted on 16 November 2013

Mr. Rahul

For calculating VAT, freight is also to be included in assessable value. In the tax invoice, freight comes before VAT.

For calculating CST, freight need not be included in the assessable value as the definition of sale price u/s Sec.2(h) of CST Act, 1956 if charged separately.

For stock transfers, since this is not a sale you have to transfer the stock at a specified price. On selling from the depot you have to raise Tax invoice or Excise invoice as per the applicablity. In the depot invoice again you have to go by the above for VAT and CST billing.