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1.   Suppose Freight Charges Paid to Ajay Transports 10000

Entry

-v-

Freight Dr   10000

To Ajay Transports 10000

Ajay Transports Dr  10000

To bank               10000

-ev-

2.   Suppose Freight Charges Paid to Ajay Transports 10000

ST Reverse Charge also applicable (ST RATE =15%*30%=4.5%)

-v-

Freight Dr   10450

To Ajay Transports 10450

Ajay Transports Dr  10450

To bank               10000

To Output Service Tax 450

-ev-

3.  Suppose Freight Charges Paid to Ajay Transports 10000

ST Reverse Charge also applicable (ST RATE =15%*30%=4.5%)

TDS ALSO APPLICABLE 2% OF 10000=200

-v-

Freight Dr   10450

To Ajay Transports 10250

To TDS 194C          200

Ajay Transports Dr  10250

To bank               9800

To Output Service Tax 450

-ev-

  1. Learn more about TDS in freight .
  2. Learn more about Reverse charge on freight
  3. Learn more about Entries of Reverse charge on freight

 

 

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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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