Supply attracting rcm
zishan mandli (203 Points)
12 July 2020
how to pass accounting entry in tally of supply of service attracting RCM???
zishan mandli (203 Points)
12 July 2020
prasad Nilugal
( GST Practitioner & Accounts )
(14546 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
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