Freight amount in purchase invoice

Hi,

The entries you pass is correct but  you can make it an single and simple one.

Purchase A/c                              Dr Rs. 100000/-

Freight & Cartage Inward          Dr Rs. 20515/-

To

Service Tax Payable                   Cr Rs. 515/-

Party A/c                                    Cr Rs. 120000/-

hello all,

please explain me the entry of service tax payable and the amount of 515 how comes.

please explain guys and gals.

hi sushmita,

                      actully in case of  service tax on freight  has to be charged On 25% of freight value after taking abatement of 75% on total freight .let see this example.

25% of Rs 20000/-=Rs 5000/-

10.3/100*5000=Rs 515/-

Now i think this example will clear your doubt.

Deepak Kumar Saini

Hi Sushmita your profile is shows nominited what is this? Actully i am very new in this form.

Dear all, this is important to note that any price incurred in connection with purchase of inventory is forming part of inventory as per AS 2. Therefore, freight inward is also part of inventory for closing inventory valuation perspective.

Regards,

Yogesh 

Hy deepak,

Its seems you get Freight Amount  Rs. 20000/-(Reimbursed Amount) from the sipplier.If  yes the enry will following:

Purchase a/c .......dr. 100000

To party ...a/c....100000

Payment frieght to transporter...

frieght  reimbursement a/c ...... Dr. 20000

To  cash / bank  20000

When u get reimbusement of frieght

Cash/ Bank ....... dr.   20000

To frieght  reimbursement a/c ...... Dr. 20000

On the service Tax side if you are getting all reimbursement of frieght bill then no need to do service tax Entry.

Please specify in detail..

Originally posted by : surender
	Hy deepak, Its seems you get Freight Amount 20000/-(Reimbursed Amount) from the sipplier.If  yes the enry will following: Purchase a/c .......dr. 100000 To party ...a/c....100000 Payment frieght to transporter... frieght  reimbursement a/c ...... Dr. 20000 To  cash / bank  20000 When u get reimbusement of frieght Cash/ Bank ....... dr.   20000 To frieght  reimbursement a/c ...... Dr. 20000 On the service Tax side if you are getting all reimbursement of frieght bill then no need to do service tax Entry. Please specify in detail..

Dear mr surender,

                                   Please clear the points

1. Is there is any service tax liability on freight inward ?

2. On which group freight inward A/c will be opened.

if this is part of purchase why not purchase booked by rs 120000/-

I agree with Mr.Yogesh reply