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Tally Vouchers Entry for Commission based services

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satyaban sahoo

Business Owner

4 Points Joined June 2024

Suppose a corporate booking comes in with a company GSTIN and is through MakeMyTrip which have a GSTIN too. How can we input all these into Tally Prime? GSTR-1 and GSTR-3B must show all the necessary tax related details, billwise entry to keep track of which booking are paid by MMT.

I did sales entry for Corporate booking (Hotel Gross Charges to company with taxes). But problem starts with commission based. I had MakeMyTrip (Sundry Creditors), Commission Expenses (Indirect Expenses), TDS, TCS (Duties & Taxes) created, but got confused how to do all the entries.

Example : Company "ABC" Hotel Gross Charges : 2075, GST (12%) : 249, Total Charges: 2324, MMT Commission : 414.96, GST on commission (18%) : 74.69, Total Commission : 489.65, TCS (0.5% of 2075) : 10.38, TDS (0.1 of 2075) : 2.08, MMT to Pay Hotel (Total Charges - Total Commission - TCS - TDS): 1821.89.

TCS, TDS deducted by MakeMyTrip. GST charged by MakeMyTrip, so is it possible to claim ITC? Please provide the solution for this. If possible, screenshots or video is appreciated.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8979 Points Joined December 2011

To accurately record the corporate booking transaction in Tally Prime, follow these steps: Sales Entry for Corporate Booking 1. Create a sales ledger for the corporate booking (e.g., "ABC Company"). 2. Create a sales voucher for the hotel gross charges, including GST. - Debit: ABC Company (sales ledger) - Credit: Hotel Gross Charges (sales account) - GST: 12% of hotel gross charges Commission and GST on Commission 1. Create a ledger for MakeMyTrip (MMT) under Sundry Creditors. 2. Create a ledger for Commission Expenses under Indirect Expenses. 3. Create a ledger for GST on Commission under Duties & Taxes. 4. Pass a journal voucher to record the commission and GST on commission. - Debit: Commission Expenses (indirect expense) - Credit: MakeMyTrip (sundry creditor) - GST: 18% of commission (GST on commission ledger) TCS and TDS 1. Create ledgers for TCS and TDS under Duties & Taxes. 2. Pass a journal voucher to record the TCS and TDS. - Debit: MakeMyTrip (sundry creditor) - Credit: TCS (duties & taxes) - Credit: TDS (duties & taxes) Payment Entry 1. Pass a payment voucher to record the payment from MakeMyTrip to the hotel. - Debit: Bank/Cash (payment ledger) - Credit: MakeMyTrip (sundry creditor) GST ITC Claim Since MakeMyTrip has charged GST on the commission, you can claim Input Tax Credit (ITC) for the GST paid. To claim ITC, ensure you have: 1. A valid GST invoice from MakeMyTrip. 2. The GST amount paid on commission is reflected in the GSTR-2A. In Tally Prime, you can claim ITC by passing a journal voucher: - Debit: GST ITC (input tax credit ledger) - Credit: GST on Commission (duties & taxes) This will reflect the ITC claim in your GSTR-3B. Reporting in GSTR-1 and GSTR-3B Ensure that all the necessary tax-related details are reflected in GSTR-1 and GSTR-3B.

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