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Former Member
Nov 24, 2009 at 11:04 AM

How to calculate service tax on freight


Hi all,

I am working for the IS-Mill products (i.e Cable Industry) client. where my question :

There are 3 types of Freights :

1. Freight calculated on Basic Price (That may be in terms of %age )

2. Freight calculated on Basic Price(Direct amount to be calculate on base price)

3. Freight calculated Directly

BP : Basic price

'{(i.e Freight : Rs. 9500(BP)}. = 9500

Service Tax on Freight 25 % BP i.e 2375 = @ 10.30%(2375) = 245

So my query is how to define these 3 types of freight in pricing procedure.

In these crucial is 3 Type.Where the calculation should be in such a way that on Freight Rs.9500,

25 % should be taken which comes Rs.2375 and again on these Rs.2375 @10.30 % should be calculated which comes Rs. 245

So here Rs. 9500 and Rs.245 both should reflect in va02 conditions.

So how to maintain in the pricing procedure.

Kindly help me out .