Dear All,
In Karnataka, a vendor is giving a quote as follows : Basic + Packing & Forwarding + VAT and where in invoice he mention Basic + Freight Outward + VAT. He charges VAT on Basic + Freight Outward and gives the invoice.
What makes me worried is the chances of Service Tax applicability on Freight Outward component given by the vendor. Kindly clarify whether the Service Tax liability will be attraced for this" Freight Outward " component mentioned by the vendor, eventhough he charges VAT on the same too. He says that since he is charging the VAT on the Freight Outward, no service tax liability will be applicable.
Kindly enlight me regarding the same.
CAclubindia
