Is packing charges legal in India?

Is packing charges legal in India?

On 19 March, the court termed the “packing charges” levied by the restaurant as illegal and an unfair trade practice.

What is packing expenses on sales?

Packing expenses are incurred for packing the material. It is an indirect cost as it is used to pack the product. Packing expense are part of selling & distribution expenses and debited to profit & loss account.

What is packing and forwarding charges?

Forwarding charges definition is the outlining of the costs of the physical movement of goods between countries (transnational logistics) and, in many cases, the costs of the legal processes of such a movement (customs duties) by clearing and forwarding agents who render such services to exporters and importers.

What is GST rate on packing charges?

GST Tax Rate: 12%

Is packing charge legal?

Many district consumer forums have given findings that charging customers for packaging is an illegal and unfair trade practice. A consumer court in Hyderabad fined KFC for Rs. 50,000 (rupees fifty thousand only) for levying Rs.

Can KFC charge for carry bag?

KFC India — charges rs. 5 for carry bag with kfc branding for take away order.

Where does packing charges go?

Explanation: If the cost of packing is related to goods then the packing charges will be shown in expenses side of trading account otherwise it will be shown in expenses side of profit and loss account.

How is packaging cost calculated?

Here are four factors to consider when calculating packaging costs.

1. Packaging Material. The biggest consideration for the cost of packaging is the material you choose. …
2. Packaging Design. …
3. Shipping Costs. …
4. Lead Time. …
5. Switch to Poly Bags. …
6. Order in Bulk. …
7. Work with a Custom Poly Bag Supplier.

What type of expense is packaging?

The IRS says “Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. If they are not an integral part of the manufactured product, their costs are shipping or selling expenses.”

Is TDS deducted on packing charges?

if Packing Materials are ur Trading Goods then there is no TDS on buying & Payment of such materials. 07 November 2009 If you have given a contract for packing including packing material the TDS is applicable u/s 194C but if you are purching only packing material then there is no TDS applicable.

How do I add packing charges to my E bill?

You can add packing charges as a product on Eway bill with HSN. Actually even packing charges is a product for invoicing purpose. You can also include cost of packing charges in product cost itself.

How do I add packing charges to GST invoice?

How to add transport/packing charges in invoice

1. Step 1 : Go to Sale Invoice menu.
2. Step 2 :Click on “Add new” button.
3. Step 3 : On Sale Invoice page click on “Add Extra Charges” button in Product Items section.
4. Step 4 : Fill the details in pop up for charges & click on “Save” button given below.

Is GST applicable on packing?

In our example packing material attracts tax @12 % under GST but IMFL is exempt. Moreover, as a whole the subject supply is exempt. Thus, for the supply of IMFL in packaged form (as in case of other similar supplies), the nature of supply is not well defined under the CGST/SGST Acts.

Do packers and movers charge GST?

If you choose to avail the complete services of a Packers & Movers company, including packing, uploading & downloading and transportation, then you will have to pay 18% GST on the bill. Some packers & movers may offer relocation services as “Cargo movement”. In that case, the GST to be levied on services will be 5%.

Is GST charged on shipping?

Domestic freight transportation services are generally subject to the GST at a rate of 5%, or the HST at the applicable harmonized rate if made in a participating province, but may qualify for zero-rating in certain circumstances if they are part of an international freight movement.

Can restaurant Take packing charges?

Technically, yes a restaurant can charge packaging charges and there is no maximum limit to it but logically speaking, it’s not a good strategy and will result in loss of customers,if a restaurant decides to charge for packaging.

What is a service charge bill?

The charge normally covers the cost of services such as general maintenance and repairs, buildings insurance and, if these are provided, central heating, lifts, porters, and lighting and cleaning shared areas and so on.