10 July 2024
In Tally Prime, if you are using a composition scheme and need to record tax paid under reverse charge mechanism (RCM), here’s how you can enter it:
### Recording Tax Paid under RCM in Tally Prime:
1. **Create Ledger for RCM Tax Paid:** - Go to `Accounting Vouchers` in Tally Prime. - Press `F9` to create a new voucher. - Select the appropriate `Date` for the transaction.
2. **Choose Voucher Type:** - For tax paid under RCM, use `Payment Voucher` (F5) or `Journal Voucher` (F7) depending on the nature of payment.
3. **Enter Details:** - Debit the respective expense or RCM ledger account. - Credit the bank account or cash ledger from where the payment was made.
4. **Include GST Details (if applicable):** - If GST is involved, ensure you select the correct `GST Ledger` for the tax paid under RCM. - Enter the appropriate `Taxable Value`, `Rate`, and `Amount`.
5. **Save the Voucher:** - Verify all details are correct. - Press `Ctrl+A` to save the voucher.
### Reporting in GSTR-4:
In GSTR-4 (Annual Return for Composition Taxpayers), tax paid under RCM should be reported in the appropriate sections that tally with your business transactions. Typically, in GSTR-4, you may report it under the following:
- **Section 4B:** Outward Supplies (including exempt supplies): This section usually includes details of supplies where tax is payable by the recipient under RCM. - **Section 5:** Non-GST Supplies: If the RCM is for supplies that are not covered under GST, they may be reported here. - **Section 6:** Exempt, Nil-Rated, and Non-GST Supplies: If the supplies attracting RCM are exempt or non-GST, report them accordingly.
Make sure to accurately reflect the RCM transactions in Tally Prime and ensure they align with the GSTR-4 reporting requirements. It's recommended to consult with a GST expert or accountant familiar with both Tally Prime and GST filing to ensure compliance with the specific requirements of your composition scheme and RCM transactions.
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