Accounting treatment of demurrage charges

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kiran (Querist)
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27 January 2018 Sir,
Can demurrage charges be booked by passing a credit note along with GST? or to be just treated as Expense and transfer to expense ledger without any affect on service tax amount?
Please do the helpful,
Regards,
Kiran

RAJA P M

RAJA P M (Expert)
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28 January 2018 The Party is registered then charge GST. In case unregistered then no need to charge GST..

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kiran

kiran (Querist)
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29 January 2018 Sir,
Please clarify that whether demurrage charges can be booked as expense or only credit note to be passed?
Regards,
Kiran

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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29 January 2018 Demurrage charges are expenses.

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kiran

kiran (Querist)
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29 January 2018 Madam,
What is the correct treatment of demurrage charges, whether credit note has to be passed or to be simply to be booked as expense and transfer to P&L or Both ?
Please do the helpful
Regards,
Kiran.

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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29 January 2018 Both the treatment is not possible as it will result in double effect.

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kiran

kiran (Querist)
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29 January 2018 Madam,
I mean whether both the treatments are correct individually not combinely?
Please clarify the same
Regards,
Kiran

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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29 January 2018 In my opinion demurrage charges are expenses. Combined effect cannot be given. You need to give individual effect to it.

RAJA P M

RAJA P M (Expert)
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