Find us on

Join us on Facebook!

How to Manage Reverse Charge Transactions in Tally.ERP 9

Error message

  • Deprecated function: The each() function is deprecated. This message will be suppressed on further calls in menu_set_active_trail() (line 2405 of /home/tallydir/domains/tallydirect.in/public_html/includes/menu.inc).
  • Deprecated function: implode(): Passing glue string after array is deprecated. Swap the parameters in drupal_get_feeds() (line 394 of /home/tallydir/domains/tallydirect.in/public_html/includes/common.inc).
posted by Rajakumari on Wed, 02/07/2018 - 17:11

In this blog we are addressing reverse charge for two specific scenarios and how they are handled in GST Software by Tally – Tally.ERP 9 Release 6

  1. Services under reverse charge
  2. Advance payment to unregistered dealer

 

Services under reverse charge
GST law, like Service Tax, has classified many taxable services under ‘reverse charge’.
What this means is that the recipient of these services will be liable to pay taxes to the department as we have discussed in our previous blogs.
Also read: What is Time of Supply for Services on Reverse Charge
The list of certain services that fall under reverse charge scenarios are listed on Central Board of Excise & Customs website at http://www.cbec.gov.in/resources//htdocs-cbec/gst/list-of-services-under-reverse-charge-2.pdf

Advance payment to unregistered dealer
In GST, any advance payment made to an unregistered dealer is also subject to Reverse Charge, that is receiver of service or the person making advance payment to unregistered dealer shall be liable to pay taxes.
To understand how these scenarios are handled in GST-Ready Tally.ERP 9 Release 6, view below videos
How to record services under Reverse Charge in Tally.ERP9 Release 6
https://youtu.be/XzKOKi_zRkk
https://youtu.be/bwHbwY-Wx2A
For more details, please visit TallyHelp.
Learn how to upgrade to Tally’s GST Software here.
Buy GST-Ready Software online by clicking here.