Entry for freight

With respect to the Service Tax liability, assuming that you are a company, since, you are making payment to the transporter, the entire liability to deposit Service Tax lies on you which is ST @ 12.36% on 25% of the value of freight which means 12.36% on 250 as per the above example cited.

Entry is ok. But if you are mentioning the same in the invoice then commercial tax deparment will asko on freight value also. Hence it is advisable either to compute vat on Rs.101000 or raise separate Debit note for collection of freight.

 We purchase goods amounting to Rs 1025000/-. As per agreement with supplier will bear all cost upto the factory gate. But we pay Rs 25600/- towards carriage inward. At last we adjust the same amount from the bill . Then what journal entry we pass in our book and what about entry tax on fright.  Please comment on this issue Sir