Sale and Purchase entry for works contract service in tally prime

Hi.
sub contractor providing customised infrastructure for supermarket and main contractor will pay on unit measurement of material used in works contract service. how to make purchase and sales entry in tally prime for it and can input tax credit for gst and can be availed on goods purchased and on sales 18℅ gst to be charged
Replies (5)
Quick Summary
This discussion explores how to record purchase and sales entries for works contract services in Tally Prime, particularly when dealing with sub-contractors providing customised infrastructure. It clarifies the applicability of GST and Input Tax Credit (ITC), noting that ITC is generally not available for constructing immovable property unless it's for further supply of works contract services. Guidance is provided on TallyPrime's accounting entries and relevant resources.

Follow revenue recognition standard if it is development property. If it is self constructed asset, follow accruals, billing process. Tallysolutions .com has known pragmatic solutions. Check that out. 

I think your asking for as standard. It is constrtion contracts.

I was asking for accounting entries and not standard s

Sry about that. I am new to works contract and this will help you How to record Works Contract Transactions in Tally.ERP 9 to Calculate TDS on the net amount of Purchase? (tallyerp9book.com)

 

Input Tax Credit

Under the GST Regime , input tax credit is not available for works contract services when supplied for construction of immovable property (excluding plant and machinery), except where it is an input service for the further supply of works contract service – which means that contractor can avail the ITC in respect of services availed from the sub-contractor. Also, ITC will not be available for all goods or services accepted by a taxable person for constructing immovable property with his own account. This excludes plant and machinery, even when used for use in the course or furtherance of business.

Works Contract Under GST - Revised rates on services - Tally Solutions

You may avail itc in this case.
To know how to create sales and purchases vouchers in tally prime, refer https://youtu.be/ccWxaOdgMB4

 

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