Supply attracting rcm
zishan mandli (203 Points)
12 July 2020
how to pass accounting entry in tally of supply of service attracting RCM???
2 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 13 July 2020
Following are RCM entries In books of account who pay Tax under Reverse charge .
1) Booking of an expense entry , Tax payable under RCM
Expense A/c Dr
To Sundry Creditors A/c Cr
( Booking entry Tax payable under RCM )
2) Create Reverse Charge A/c under Current asset
Reverse Charge A/c Dr
To CGST A/c Cr
To SGST A/c Cr
( Increasing liability of Tax )
3) CGST A/c Dr
SGST A/c Dr
To Bank A/c Cr
( payment of Tax in GOVT account )
4) CGST A/c Dr
SGST A/c Dr
To Reverse Charge account A/c Cr
( Entry for claiming Input Tax credit )
5) Payment to creditors
sundry Creditors A/c Dr
To Bank A/c Cr
( payment made to Sundry creditors and Tax paid by us under RCM )
prepare Self Invoice for RCM
zishan mandli
(203 Points)
Replied 13 July 2020
Sir, i cant say how thankful I'm to you....again thanks a lot sir...
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