RCM in Gstr4
This query is : Resolved
11 April 2022
How to enter Tax paid on reverse in tally prime in compisition opted firm.and where it enters in gstr4
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.
### 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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