WE ARE A GOVERNMENT SUPPLIER. GOVERNMENT DEPARTMENT APPROVES THE RATES INCLUSIVE OF FREIGHT, TOLL CHARGES AND 18% GST.
FOR EXAMPLE RATES APPROVED IS RS.1718/- ALL INCLUSIVE AS ABOVE.
METHOD 1 TO ISSUE INVOICE
RS 1455.93 + 18% GST RS. 262.06 = RS 1718
HERE WE HAVE TO PAY SERVICE TAX ON FREIGHT SEPARATELY MEANING DOUBLE TAXATION
METHOD 2
BASIC PRICE 1283 + GST 18% = RS 1513.94 ADD RS 204.06 TOWARDS FREIGHT RS. 175 GST@ 5% ON FREIGHT RS 8.75 AND RS. 20.31 AS TOLL CHARGES...
PLEASE ADVICE WHICH METHOD TO ADOPT AND AVOID DOUBLE TAXATION...
REGARDS
JATINDER AGGARWAL
Whichever method you apply, tax impact will be same.
You cannot charge 5% GST on freight. 5% is only for GTA and not for everyone.
You have to charge 18% on freight (same as your principal supply).
If you are showing Toll in invoice or not your total tax impact will be same.
In invoice you have to charge 18% on every expense. Status remain same even if you are issuing 2 invoices.
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