Transportation and Freight Documentation
Domain 5 - Transportation and Freight Documentation
This domain tests the transport documents you will raise and check, freight computation including chargeable weight, and e-way bill compliance.
Core documents
- LR / lorry receipt (bilty) / consignment note: consignor, consignee, origin-destination, vehicle number, packages, weight, freight, e-way bill number, declared value and risk.
- Freight bill from the transporter; the POD (proof of delivery) closes the trip.
- Freight basis: per kg, per tonne, per km, per trip, or a flat contract rate. Air and courier use chargeable weight = the higher of actual and volumetric weight (L × W × H in cm ÷ 6000).
E-way bill
- Required above ₹50,000 of consignment value (state thresholds vary; Punjab uses ₹50,000).
- Part A = invoice details; Part B = vehicle details. A vehicle change requires a Part B update.
- Validity: 1 day up to 200 km, then 1 day per additional 200 km or part thereof.
- Moving goods without a valid e-way bill attracts a penalty of ₹10,000 or the tax sought to be evaded, whichever is higher.
Worked example
Consignment value ₹80,000, distance 550 km, 4,000 kg actual, 20 cartons of 60 × 50 × 40 cm.
- Volumetric weight = 60 × 50 × 40 ÷ 6000 = 20 kg per carton × 20 = 400 kg, so chargeable weight is the actual 4,000 kg.
- E-way validity: 550 ÷ 200 = 2.75, rounded up to 3 days.
- Freight at ₹2.50/kg = 4,000 × 2.50 = ₹10,000, plus GST as applicable.
Traps
- Letting the e-way bill lapse because Part B was not updated after a breakdown.
- Billing on volumetric weight when actual weight is higher.
- Swapping demurrage (cargo/container inside the port beyond free time) with detention (container outside the port beyond free time).
- Paying a transporter before the POD and damage claims are settled.