PACKING CHARGES

[SANJEEV VERMA]

I AM REGISTERED IN DELHI & THIS AMOUNT OF GOODS SOLD IN PUNJAB

 

GOODS VALUE 500000/-

PACKING CHARGES 10000/-

 

TOTAL 510000/-

 

WHICH AMOUNT POSTED IN ACCOUNT AS CENTRAL SALE 500000/- OR 510000/-

[YAGAY and SUN]

Taxable amount would be 510000/-  as the definition of the sales price includes any sum charged for anything done by the dealer in respect of goods at the time of, or before, the delivery thereof;

[SANJEEV VERMA]

DEAR PRADEEP JI,

THANKS FOR REPLY,

 

IF THE DEALER PAID FREIGHT CHARGES IT WILL BE POSTED IN SALE.

 

AT THE TIME OF ASSESSMENT SALES TAX OFFICE ASK US HOW CAN U RAISE YOUR TURNOVER WITH THIS EXP.

[SANTHANA KRISHNAN]

There are two kinds of Packing Charges.

 

1. Primary  - Without this packing, materials should not be sold – eg. Beverages.  – For this packing charges should be treated as Taxable Turnover.
2. Secondary  - This is used for used for transporting the material – eg. Carton box etc.  – For this packing charges should not be treated as Taxable T/O.

FYI pls.

 

Regards

DCJ

[r.rajkumar kumar]

rs/ 510000-inclusive of packing charges.

AI Summary

Packing charges treated as part of taxable turnover when charged at or before delivery, and included in the sale value for assessment.
Packing charges levied by a dealer are included in the taxable sale value where the sales price definition covers any sum charged for anything done by the dealer at or before delivery; primary packaging that is integral to the product is treated as part of taxable turnover, whereas secondary packaging used only for transport is generally excluded.