10 July 2024
To pass the entry in BUSY accounting software for the payment made under reverse charge mechanism (RCM) amounting to Rs. 11,814, you would typically follow these steps:
1. **Create a Purchase Voucher:** - Go to the **Vouchers** menu in BUSY. - Select **Purchase Voucher** (or **Purchase - RC (Registered)** depending on the version of BUSY you are using).
2. **Enter Supplier Details:** - Enter the supplier details. Since this transaction is under RCM, the supplier may be unregistered or registered depending on the nature of the supply.
3. **Enter Purchase Details:** - In the purchase details section: - **Select the appropriate ledger for the expense account**: This could be an expense account related to the nature of the payment (e.g., Freight Expenses, Legal & Professional Fees, etc., depending on what the payment was for). - **Enter the amount**: Rs. 11,814 in the respective column.
4. **Select GST Details:** - For RCM transactions, you need to select the GST ledger that represents the tax payable under reverse charge. This is typically configured in BUSY as a GST ledger under RCM.
5. **Save the Voucher:** - After entering all necessary details, save the purchase voucher.
### Example Entry in BUSY:
Assuming the payment was for legal and professional fees under RCM, the entry in BUSY could look like this:
- Debit Legal & Professional Fees account with Rs. 11,814.00 (amount paid). - Credit Input CGST - RCM, Input SGST - RCM, or Input IGST - RCM depending on the type of GST applicable (interstate or intrastate) with the respective amounts.
Ensure that the tax amounts (CGST, SGST, or IGST) are calculated correctly based on the applicable rates and the nature of the transaction (intra-state or inter-state).
Always verify the specific tax rates and ledger names as configured in your BUSY software. If you are unsure about the entries or the tax implications, it's recommended to consult with an accountant or a tax advisor familiar with BUSY accounting software and GST compliance.