TaxTMI 
TaxTMI 
Vat on Freight
X X X X Extracts X X X X
X X X X Extracts X X X X
....at on Freight<br> Query (Issue) Started By: - gopal rao Dated:- 22-1-2014 Last Reply Date:- 24-4-2014 VAT + CST<br>Got 6 Replies<br>VAT / Sales Tax<br>Dear Sir, I am showing freight charges in Invoice. For calculation of Vat shall I include the freight charges or not as per AP VAT Rules ? .pls clarify Reply By SHIVKUMAR SHARMA: The Reply: Dear Mr.Rao If You are showing Freight amount in invoi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ce ,You have to include the freight amount for calculation of VAT. SHIVKUMAR SHARMA Reply By Mritunjay Kumar: The Reply: If you are showing freight clearly and seperatly in the invoice then vat will not be chargeable on the freight amount. Regards, Mritunjay. Reply By kamal mall: The Reply: Both the answers are contradicting, Please clear us. Reply By arup das: The Reply: 3 Scenarios Whe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n title and delivery of goods is transferred at the premises of manufacturer vendor---Cost of Freight would not be included in the value for calculating VAT. If Vendor(you) is responsible for delivery of Goods at customer premises(i.e title will get transferred in the customer premises), Freight should be included in the value for the purpose of VAT. When title of goods is transferred at the pre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mises of the manufacturer vendor, however, delivery of goods will be at customer premises:- Even if the cost of freight is seperately charged on the face of the invoice , the same shall not be included for the purpose of VAT. Reply By Rangarajan D V: The Reply: In my opinion - When the price is ex-works, the sale concludes at your factory gate and the transportation commences after taking deliv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ery from you, in which case the buyer bears the freight / insurance risk. In case, the price is door delivery, the sale concludes only at the gate of the buyer and the seller assumes risk of insurance and bears the freight cost. In the former case, freight is a post-sale expense and not to be included for computing tax. in the latter case, it is pre-sale expense in which case freight need to be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....included for computing tax liability Reply By rishi mohan: The Reply: Vat is not applicable on the freight charges mentioned in the invoice.<br> Discussion Forum - Knowledge Sharing ....