RCM in Gstr4

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soumyavinu

soumyavinu (Querist)
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11 April 2022 How to enter Tax paid on reverse in tally prime in compisition opted firm.and where it enters in gstr4

Asha Kanta Sharma

Asha Kanta Sharma

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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.