Brajesh gautam (student) (232 Points)
09 September 2012We are charging freight of 1000 in invoice of 100,000 that will be paid by us to Transport but ultimately paid by buyer
is below enrty correct
Buyer DR 106000
To sale 100,000
To Vat 5% 5000
To frieght payable 1000 ( Pl suggets the Group )
on payment to transport
Friegt payble Dr 1000
To Transport Com 1000
and
Transport Com Dr 1000
to bank 1000
also suggest that is there any liabilty of service tax on Seller
Rakshit
(practising)
(338 Points)
Replied 09 September 2012
With respect to the Service Tax liability, assuming that you are a company, since, you are making payment to the transporter, the entire liability to deposit Service Tax lies on you which is ST @ 12.36% on 25% of the value of freight which means 12.36% on 250 as per the above example cited.
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 10 September 2012
Entry is ok. But if you are mentioning the same in the invoice then commercial tax deparment will asko on freight value also. Hence it is advisable either to compute vat on Rs.101000 or raise separate Debit note for collection of freight.
SANJAY KU NAYAK
(Accountant)
(22 Points)
Replied 21 October 2013
We purchase goods amounting to Rs 1025000/-. As per agreement with supplier will bear all cost upto the factory gate. But we pay Rs 25600/- towards carriage inward. At last we adjust the same amount from the bill . Then what journal entry we pass in our book and what about entry tax on fright. Please comment on this issue Sir
CAclubindia
