Reverse charge
ashish (article) (151 Points)
30 May 2015ashish (article) (151 Points)
30 May 2015
CA. Nitin Mahajan
(Chartered Accountant / Finance Professional)
(45 Points)
Replied 22 July 2015
NO. Reverse charge mechanism is applicable in case of freight paid to goods transport agency. In this case, the purchaser is not paying anything to goods transport agency, so reverse charge mechanism is not applicable.
(Its always a good idea to not book such charges as freight in financial statements as if the same are scrutinised by deprtmental officials, they may get misled.)
JAGANATHAN R ACMA, SAP(Fi-Co)
(Manager Accounts and Finance)
(915 Points)
Replied 31 July 2015
you have to add to Purchase cost not account the expenses
ashish
(article)
(151 Points)
Replied 01 August 2015