I have made web searches to find out the components that are within the realm of VAT law for inclusion in the Sale Invoice amount of a Company for levy of VAT. But in many of my web searches, I could not find exact information required. In Tamilnadu, under VAT law, are the following items included in the value of goods for charging VAT? Or is VAT applicable to all the components stated below?
Ex Factory Price of Goods
Basic Excise Duty
Addl. Excise Duty
Cess
Lorry Freight
Service Tax on Lorry Freight
Handling charges (loading and unloading charges)
Packing charges
My specific requirement is whether VAT is to be charged on the ex factory price including duty and cess and/or on the value including Lorry Freight and Service Tax, and/or on the value including Handling charges and/or on the value including Packing charges? If so, is there a uniform VAT rate applicable or different rates of VAT will apply?
Are there other items that are also covered for VAT levy?
Because questions arise whether we can claim Input Tax Credit for the value of all components as above said of a Sale Invoice.
Suppose we raise a debit note for return of materials to our supplier that involves a sale transaction by them including VAT charged, can we claim VAT charged on the value of materials returned covered under debit note from the earlier VAT amount charged by the supplier?
How the VAT Input Tax Credit treatment will be at the end of the supplier of goods?
Please provide your eminent assistance.
