let me know if a supplier in his invoice he has added
Transportation charges & on that he is charging Vat
whether vat is admissable on transportation Charges also ?
Basic + Excise + Transportation charges = X amount on X
amount Vat is chaged whether it is correct ( within State)
Purchase. & also let me know what rule is applicable for
Outside state ?
Answers were Sorted based on User's Feedback
Answer / tax beginner
VAT Can not be charged on Freight or Transporation.
so for example
Basic - Rs.100/-
ED @10% - Rs. 10/-
Assesible Value Rs.110/-
VAT @4% - Rs.4.40
Net - Rs.114.40
Add : Transp. Rs.5/-
landed Cost Rs.119.40
If Transport is by outside Agency, it comes under GTA
Services and Service Tax is to be paid by Service Receiver
to Goverment after availing 75% rebate.
| Is This Answer Correct ? | 9 Yes | 5 No |
Answer / praveen.kp
The word comes to picture with the supply of material or
goods, for services like freight strictly no vat can be charged.
There is no specific rule for this, but the general rule is
that vat is applicable only when there is any supply of goods.
| Is This Answer Correct ? | 7 Yes | 5 No |
Answer / p.murali
vat is not applicable on transportation or freight, when we go to month end vat payments that time we need to show in in other columns , there is no specific rule for this particular. but many of manufacture firms are charged like this for their cost of items.
| Is This Answer Correct ? | 0 Yes | 0 No |
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