Ex- Factory Consignment
This query is : Open
venkata veerababu
(Querist)
24 May 2021
Dear Experts
we have purchasing material from inter state @ Ex-Factory Rate. Frieght charges paid by us in cash mode that frieght amount couldn't be shown anywhere in our invoices. suppose If Department people can ask how did you bouught that material from that area? without paying the frieght material can't purchase from them so pay the RCM fee. how can i answer to them. Kindly give clarification.
we have purchasing material from inter state @ Ex-Factory Rate. Frieght charges paid by us in cash mode that frieght amount couldn't be shown anywhere in our invoices. suppose If Department people can ask how did you bouught that material from that area? without paying the frieght material can't purchase from them so pay the RCM fee. how can i answer to them. Kindly give clarification.
CMA Poornima Madhava
(Expert)
24 May 2021
1) Freight charges <10000 per day paid in cash is an allowable business expense
2) RCM on freight charges is applicable only when transported through GTA. If you get the materials through GTA, even though you may not account the same, the GTA would upload their transactions on GST portal
3) It is unlikely that the department would notice such discrepancies but the auditor might raise a query during audit, the chances of which are also very less.
2) RCM on freight charges is applicable only when transported through GTA. If you get the materials through GTA, even though you may not account the same, the GTA would upload their transactions on GST portal
3) It is unlikely that the department would notice such discrepancies but the auditor might raise a query during audit, the chances of which are also very less.
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