Dear sir,
my query is that, in Andhra Pradesh Sales made under VAT( with in the state of AP), if we charges freight charges in the invoice (outsiders trucks), it will be treated as part and parcel of sales, VAT is chargeable on freight charges also, but the freight charges are not our income or expenditure and the same freight charges what we collect from the customers is 100% payable to truck owners.
when the freight charges are not our income why it should be taxable.
At the same time if do not add the freight charges in the invoice, but a debit will be raised
on customers towards freight charges, in such case also VAT is chargeable or not.please clarify.
VAT Applies to Freight Charges in Andhra Pradesh, Even When Billed Separately, Per Section 2(29) of AP VAT Act. A query was raised regarding the applicability of VAT on freight charges in Andhra Pradesh, specifically when freight charges are included in sales invoices or billed separately. The concern was whether VAT should apply when freight charges are not considered income or expenditure for the seller, as they are fully payable to truck owners. A response referenced Section 2(29) of the AP VAT, indicating that including freight charges in the invoice or issuing a separate debit note does not alter tax liability. The matter might be contestable in court, but separate billing does not exempt it from sales tax. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
