Vat on Freight

[Gopal B]

Dear Sir,

I am showing freight charges in Invoice. For calculation of Vat shall I include the freight charges or not as per AP VAT Rules ? .pls clarify

AI Summary

Debate on Including Freight in VAT: Differing Opinions on AP VAT Rules Based on Delivery Terms and Invoice Details. A discussion on whether freight charges should be included in the VAT calculation as per AP VAT Rules reveals differing opinions. One view suggests including freight in VAT if shown in the invoice, while another states VAT is not applicable if freight is separately listed. Additional input highlights scenarios: if goods are transferred at the manufacturer's premises, freight is excluded from VAT; if delivery is at the customer's premises, freight is included. The consensus varies based on delivery terms, with some arguing freight is a post-sale expense and others considering it pre-sale, affecting VAT applicability.