Accounting heads

show it as carriage outward under indirect exp. if your expenses is done only on sale or distribution. 

for freight charges, yu account in Carriage outward , based on the Lorry receipt and don`t include diesel cost, and other expenses in carriage outward, as yu have to pay the Service tax only on actual freight charges, providing  yu are using outside trucks. Suppose, if you are using own trucks for transporting your own materials, use Account Head LOgistics exp, where it will not questioned by the Service Tax department , while scrutinising the Balance sheet and P & L.