Freight and labour charges

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19 Points Posted on 06 April 2020
My client is trader of cement goods. When he generate an invoice he has a column under indirect expence named freight outwards which I charged before charging Gst. Since freight is Paid to unregistered tempu wala will it affect his Profit loss account.Since his gst payable is increasing as compared to ITC because of these freight charged ?
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On 06 April 2020 at 07:35 Report
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This discussion explores the impact of freight charges on a cement trader's profit and loss account and GST payable. When freight is paid to an unregistered transporter, it's subject to GST, potentially increasing tax liability and reducing profit margins. The conversation aims to clarify accounting entries and offer solutions to mitigate the increased tax burden.

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"Do the Right Thing...!!!"
128157 Points Posted on 06 April 2020
Yes... GST will be chargeable and it's increase tax liability.
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On 06 April 2020 at 08:12
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19 Points Posted on 06 April 2020
So what should he do to decrease it as he has limited margin on goods but freight will add in his profit statement . So is i missing some entry ? plz elaborate and explain.
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On 06 April 2020 at 12:28

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