Freight, Transport charges are included in Assessable Value while Caluculation of Vat

[krishna besta]

Dear sir,

Please solved the issue below mentioend.

Sir, Some of the Vendors charged Freight charges, Transport charges on bills, In the bill show Basic Value of Goods, Freight and Transport charges. That freight and Tranport charges alos added Vat. 

In my knowledge Freight, Transport charges are reimbursment from the vendor. But not inclued in the assessable value while caluculationg the basic value for Vat.

Please resolve the above mentioned issue.

AI Summary

Freight Charges Included in VAT Calculation When Listed on Invoice, According to Section 2(29) of APVAT Act. A query was raised about whether freight and transport charges should be included in the assessable value for VAT calculation. The issue was that some vendors included these charges on invoices, adding VAT to them. The response referred to the APVAT Act's definition of 'Sale Price' under Section 2 (29), which includes the total amount in the invoice or as determined by the assessing authority. If freight is shown on the invoice, it becomes part of the taxable amount for VAT purposes. The discussion emphasizes that freight charges, when listed, are subject to VAT.