Is VAT & CST should be charged on Freight charges or not.
Answers were Sorted based on User's Feedback
Answer / ca frb
AS PER MY OPINION VAT SHOULD BE CHARGED ON FRIGHT IF TO BE
BILLED BUT IN CASE OF CST ITS VERY CLEAR THAT CST NOT TO BE
CHARGES ON FREIGHT.
IF ANY CLEARIFICATION ON THIS MATTER PLS FORWARD THE SAME.
| Is This Answer Correct ? | 119 Yes | 33 No |
Answer / ca dvbreddy
VAT Is chargeable on Freight (transporatation of goods) in
case Transport is providing by the same Party.
In case Tranporatation by some other party then Service tax
is applicable on the Freight.
In case of CST Tranactions it is clear that VAT is not
applicable on Freight
| Is This Answer Correct ? | 73 Yes | 12 No |
vat is a value added tax which is leived in case of
manufacturing & cst is leivied when inter or intra state
transaction is made on freight charge vat &cst is not
caluculated but freight was related to service so service
tax is caluculated on it
| Is This Answer Correct ? | 119 Yes | 70 No |
Answer / manpreet
no CST is to be charges on freight charges.but Vat is to be
charges on freight in the same state.
| Is This Answer Correct ? | 19 Yes | 2 No |
Answer / biswanath das
As per my opinion vat should be calculate on delivery e.i
bill amount+freight+vat
| Is This Answer Correct ? | 43 Yes | 27 No |
If the Freight is included in Invoice we need to pay VAT. If it possible to find Seperatly freight charges, no need to pay VAT or CST. Only Service Tax is to pay. Now VAT is 4% and Service Tax is 10.3% to get benfit of Tax, all Traders are computing VAT on freight.
strictly speaking Service Tax is applicable to Freight. No CST or VAT
| Is This Answer Correct ? | 23 Yes | 14 No |
Answer / pardeep
no vat & CST is to be charges on freight charges
| Is This Answer Correct ? | 93 Yes | 86 No |
Answer / vinod.p
VAT or CST is not applicable for Freight or Packing and Forwarding Charges if it is mentioned and collected in the invoice separately. But at the same time freight or packing charges shall not be a part or included in the price. ie, there shall not be direct relation with freight and Price.Example. if freight is charged as a percentage of price , it will be taxable.
| Is This Answer Correct ? | 14 Yes | 11 No |
Answer / ca kunal bhutada
Applicability of VAT on freight/transport charges is depends up on terms mentioned in the PO. If the term is ex-factory then VAT is not appliable on transport charges . If the term is "delivery at site " then VAT is applicable. Kindly verify your PO terms.
Point of delivery. ( transfered of risk to buyer is important factor to decide whether vat is charged on freight amount or not)
Under MVAT act, 2002 all the expenses incurred for delivering the goods to the customer are liable for VAT except insurance , octroi .
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / gokul
VAT Is chargeable on Freight
CST NOT TO BE
CHARGES ON FREIGHT.
| Is This Answer Correct ? | 0 Yes | 0 No |
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