dear friends happy new year.
The company sells goods on "freight to pay" basis. When they raised the invoice they deduct the freight amount paid by the purchaser.
Ex:- The invoice appear as follows.
10kg*Rs.1000/= 10,000
_________
total 10,000
Less: freight 1000
_________
9000
_________
Now my doubt is, is it enough to recognise 9000 as sale or,
recongnising sale for 10000 and freight 1000. suggest me.
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what is sale value?
Replies (3)
i thnk ur billing is wrong ur sale value is 10000/- and for freight u hve to issue credit note for 1000 becuase u hve to levy tax on sale value means 10000/- not on 9000/- and wht is the logic of deducting of 1000 from sale invoice??
I think If we Book Freight as expense, we need to deduct TDS.
so it is better to deduct freight amount from invoice itself.
by deduction freight charges from ur sale invoice afftect ur profiatibility.. and also affect inventory so u cant do this?? so hve to show a freight an expense and deduct tds if applicable
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