Under reverse charge how is to be passed entry in the books of account. kindly assist me I am writing below questions.
Q-1. I pay freight in cash for Rs.6500 per day on the purchase of goods in local.
Q-2. I charge freight on Bill because I pay freight advance to driver or transportation on behalf of buyer.
Q-3. I charge freight on bill because I pay freight advance to driver or transportation on behalf of buyer but in the same bill I charge gst 18%, 5%, 28% on the goods so what rate have to be charged on freight ??
kindly assist me with the journal entry
Ans to Q no.1. Dear Saifi, You need to pay GST under RCM for GTA Service availed.
Ans to Q no.2. If your supplies falls under more than 5% tax bracket it is advisable, ask your buyer to arrange the transporter for transportation of goods, otherwise the freight also will be the part of your taxable supply.
Ans to Q no.3. It is composite supply and supply of goods is a principal supply, therefore the rate of tax on freight will be the rate of tax of your principal supply.
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