Hi,
I am Archana. I am working in a Pvt. Ltd. Co. (manufacturing Co.)
We are making an Excise Invoice for material, which include material value + Excise duty + Vat/CST.
We pay an Octroi for material despatched in Mumbai & Collect money from party.for that we are making commercial Invoice. ie. Octroi + Vat (12.5%) as Per our CA. is it ok?
Is there any other procedure for octroi payment receive to save the 12.5% Vat?
Reply me asap.

From India , Thana
HI
Octroi is not Goods thas no Sales Tax/Value added tax is applicable .
According to my understanding you might be taking the services of Octroi agent to clear the Octroi at some % thus you should be charging your customer Octroi paid (actual) + amount paid to Octroi agent by issuing debit note without charging any taxes.
But if you are claiming some margin over & above the Octroi paid (actual) arther than amount paid to Octroi agent, you should be charging Service tax on Additional Margin.

From Singapore , Singapore

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