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reverse charge entry

Ajeet Singh (12 Points)

10 July 2017

what is the treatment of JOB WORK reverse charge in tally erp9...entry and payment etc...

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2 Replies

Kunal Pansari (Accountant) (1037 Points)
Replied 10 July 2017

Suppose you receive a repair service of Rs. 10000 from Mr. A which is excluding GST of 18% (9% CGST + 9% SGST)

Now, you will first book the service of Mr. A in Journal Voucher as below.
Dr. Repair & Maintainance
Cr. Mr. A

Now you will pay Mr. A Rs. 10000 and pass entry in Payment Voucher as below
Dr. Mr. A
Cr. Bank/Cash

Now, as it your liability to pay GST under RCM, you will need to increase your GST liability as below.
In Journal Voucher press Alt+J
Type of duty/tax - GST
Nature of Adjustment - Increase of Tax Liability
Additional details - Purchase under Reverse Charge

Dr. Reverse Charge Tax ( Current Assets) 1800
Cr. CGST 900
Cr. SGST 900

Now pay your both taxes and pass entry as below
In Payment Voucher press Alt+S
Tax Type - GST
Payment Type - Receipant Liability
Dr. CGST 900
Dr. SGST 900
Cr. Bank/Cash