How to Manage Reverse Charge Transactions in Tally.ERP 9

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

How to Manage Advance Paid to Unregistered Dealers in Tally.ERP 9

For more details, please visit TallyHelp.

Learn how to upgrade to Tally’s GST Software here.

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Shailesh Bhatt

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