ankita shah (accountant and Vat Practitioner) (30 Points)
30 June 2016Hello,
I have Question about Var Fright charges provided to purchase party. can i shaw in tax invoice seprately if yes then vat sholud be apply on it or not.
and transport facilities is taken from another Tranportor . so what shold be do?
Harshit Kabra (INVESTOR)
(Student CA final)
(1113 Points)
Replied 30 June 2016
in ur case it is said- "freight out" the case of sale for destination -
In such case freight charge should be can be shown sepreately from the sale price-
journal entry will be -
Account receivable acct Dr. 100
Freight acct Dr. 20
To cash acct. 20
to sale acct. 100
Sold merchandise on account for 100, terms F.O.B. destination, and paid the freight bill of 200.
hope it helped u.
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