Is VAT & CST should be charged on Freight charges or not.

Answer Posted / 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.

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