Purchase from URD: Reverse Charge Liability Report in TallyPrime

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:

  1. Go to Gateway of Tally > Display > Statutory Reports > GST Reports > GSTR-3B.
  2. 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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