TaxTMI 
TaxTMI 
Dear Sir,
Whether tnvat has to be charged on freight charges if it is shown in the invoice .
Could any body give us reply for this query.
Regards,
S.Ramakrishnan
vat for freight charges
29 May 2014 
2 Replies 
20249 Views Asked by
VAT on freight charges depends on whether freight is included in the sale price under the parties' contract.
VAT applies to the price of goods; freight is taxable if it is included in the sale price. If price and freight are separately agreed and invoiced, freight is not liable to VAT. Whether freight is part of the sale price is to be determined by the contract terms and by which party bears delivery responsibility; seller-borne delivery typically makes freight part of the price, whereas buyer-arranged carriage typically keeps freight separate. (AI Summary)
VAT applies to the price of goods; freight is taxable if it is included in the sale price. If price and freight are separately agreed and invoiced, freight is not liable to VAT. Whether freight is part of the sale price is to be determined by the contract terms and by which party bears delivery responsibility; seller-borne delivery typically makes freight part of the price, whereas buyer-arranged carriage typically keeps freight separate. (AI Summary)