Query on VAT Calculation

[Asked by 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.

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.