What is tax applicable on freight/insurance added as per valuation rules?
We have two hns supply and making invoice One product HSN having tax rate 18 % Second product HSN having tax rate 5 % We add freight separately in the bill what is tax applicable on freight/insurance added as per valuation rules. 5 % or 18 %
The transportation and insurance value will be divided on the scientific basis and tax proportionately between 5% and 18%. Further, Scientific basis in case of insurance will be value of goods (generally). In case of transportation may be on basis of area or other basis.