RCM perfact entry

RCM ki entry kaise karte he gstr3b mein se kaise entry karte hai wo samaj nahi Raha he pls reply for perfect entry
Replies (3)
Quick Summary
This discussion explains how to correctly record Reverse Charge Mechanism (RCM) entries in GSTR-3B, specifically for legal expenses paid to advocates. It details the necessary ledger creations and journal entries for booking the expense, paying the RCM liability, and claiming input tax credit. The process ensures accurate accounting and compliance for RCM transactions.

We will pass entry for Legal expenses paid to Advocate under RCM

You have to create ledgers, Input CGST RCM A/c , Input SGST RCM A/c , Out put CGST RCM A/c ,Out put SGST RCM A/c
1)
Legal Expenses A/c Dr
Input CGST RCM A/c Dr
Input SGST RCM A/c Dr
To Output CGST RCM A/c Cr
To Output SGST RCM A/c Cr
To Advocate A/c Cr
( payable under RCM )

2) payment entry under RCM

Output CGST RCM A/c Dr
Output SGST RCM A/c Dr
To Bank A/c Cr
( payment under RCM)

 

3) For  input tax credit  you pass entry 

Input  CGST    A/c  Dr

Input  SGST    A/c  Dr

To Input  CGST  RCM   A/c  Cr

To Input  SGST  RCM   A/c  Cr 

( entry for  input tax credit under RCM )

 

4) Payment  to  Advocate  entry  

Advocate                A/c    Dr 

To Bank                  A/c    Cr 

( payment  to  Advocate  for  legal  expenses incurred ) 

To apna RCM input hai wo khada rahega na assets side pe aur apne ko output side pe pay karne ka rahega na
2 nd entry we pass for payment under RCM and 3rd entry pass for input tax credit under RCM.

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