This report in TallyPrime specifically assists businesses with understanding and managing their reverse charge liability arising from purchases made from unregistered dealers (URDs) under GST.
Here’s a breakdown of the report’s purpose and functionalities:
1. Understanding Reverse Charge:
- In specific scenarios under GST, the responsibility for paying GST on a purchase transaction shifts from the supplier (URD) to the recipient (your business). This is known as “reverse charge.”
- This report helps you identify potential reverse charge situations and calculate the associated tax liability.
2. Key Features of the Report:
1. Filtering and Threshold:
- The report offers a threshold setting (default: Rs. 5,000). Only purchases exceeding this threshold from URDs are displayed.
- You can adjust the threshold (F12 > Configure) to suit your specific needs.
2. Transaction Details:
- The report lists all purchase vouchers made from URDs exceeding the set threshold during the selected period.
- It displays relevant details like:
- Invoice number and date
- Supplier name (URD)
- Taxable value of the purchase
- Applicable tax rates (CGST, SGST, IGST)
3. Tax Liability Summary:
At the bottom of the report, you’ll find a summary of your reverse charge liability:
Total Taxable Purchases from URDs: Represents the cumulative taxable value of all qualifying purchases.
- Total Tax Liability: Calculates the total GST amount you’re liable to pay on these purchases based on the applicable tax rates.
- Liability Already Adjusted (Optional): Shows any tax amount already recorded in your books through journal adjustments for reverse charge.
- Pending Liability: Highlights the remaining tax liability that needs to be accounted for (total liability – already adjusted amount).
3. Benefits of Using the Report:
- Early Identification: Helps you identify potential reverse charge situations early on, avoiding any last-minute adjustments or penalties.
- Accurate Liability Calculation: Provides a clear picture of your total reverse charge liability, ensuring accurate tax payments.
- Compliance Support: Enhances compliance with GST regulations by ensuring timely and accurate reporting of reverse charge transactions.
4. Accessing the Report:
- Go to Gateway of Tally > Display > Statutory Reports > GST Reports > GSTR-3B.
- Press R (Show URD Purc) or click the “Show URD Purc” button (if available).
Additional Notes for Purchase from URD in TallyPrime:
- The report format and specific options might vary slightly depending on your TallyPrime version.
- Consult your TallyPrime documentation or support for detailed instructions related to your specific version.
- It’s recommended to seek professional guidance from a qualified accountant, especially for complex situations involving reverse charge under GST.
By utilizing the “Purchase from URD – Reverse Charge Liability Report” effectively, you can simplify the process of managing your reverse charge liability under GST in TallyPrime, ensuring accurate compliance and avoiding potential risks.
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