Query on VAT Calculation

[Guest]

Dear Sir,

Is the CST & Freight charges should be included on the cost of items while calculating VAT.

Regards,

cveel,

The Carver Plaza,

Champhai, Mizoram.

[YAGAY andSUN]

Please check the definition of the Sales Price under Section 2 under Mizoram VAT Act.  You would get an idea what to include and what to not in taxable amount to calculate the VAT.

If you had paid CST on the Goods at the time of purchase then it would become the integral part of cost.

AI Summary

Sales Price definition determines VAT inclusion; CST paid on purchase and freight may form part of the taxable cost. Whether freight and inter-state sales tax are included in VAT taxable amount depends on the statutory definition of Sales Price; CST paid on purchase ordinarily forms part of cost and should be included in the taxable base, while freight must be tested against the Sales Price definition for inclusion.