Frequently Asked
Questions
Find Solutions to Common Issues Related to taxation - rcm data feeding and report
How can I create a purchase bill with RCM calculated on it?
To create a purchase rcm voucher in BUSY then follow the below steps.
Step 1: Click on transactions and then purchase
Step 2: Then add and select the purchase type as rcm and enter the required details such as party name, item details then save it
Step 3: Go to gst misc utilities and then check/post consolidated rcm payable
Step 4: Select the entry and press f4 for posting the consolidated voucher after that rcm entry will reflect in the GST report.
How do I record rent expenses with reverse charge in BUSY?.
To record rent Expense with reverse charge you have to follow the steps
1 create a expense ledger account and mention gst applicable and its tax category sac code and ITC eligibility
as service and RCM nature should be Compulsory
2 Go to payment voucher and fill the series date etc then debit Rent and Credit bank or cash you need to also ensure
that in payment voucher gst nature should be RCM Expenses
How do I make a master for RCM expenses in BUSY?.
for make master for RCM expenses please follow the below steps
Step 1 : go to the master option under administartion menu
Step 2 : click on account option & add new account which is open to add any new account master .
Step 3 :Enter the details required for the RCM expense account name, group, GST type, tax category, HSN code, ITC eligibility, and RCM nature.Save the ledger once the necessary details are filled in.
How will the RCM entry be different?.
Different between Regular entry and RCM entry
Step 1: Go to transactions Menu click on Purchase voucher option.
Step 2: Under Purchase voucher click on Add.
Step 3: In Purchase voucher header select Series name, date, vch no. type.
Step 4: Select Purchase Type: Local-RCM / UnReg or Service Import-RCM or as required.
Step 5: in Regular Entry as Purchases Type slect applicable purchases Type and ITC Eligibility : Input Goods/Services
I made a master data for my tempo expenses and enabled RCM. When I post the journal entry, will the credit be posted to the ITC available? What is my registered company name in BUSY?
When you post journal voucher for Tempo expenses along with RCM
Step 1:When saving a voucher, a registered expense screen appears. This screen likely allows you to input details of the expense.
Step 2:Within the expense screen, there's an option called ITC eligibility. Here, you need to select whether the expense is related to input goods or services that qualify for Input Tax Credit, then save voucher it will be automatically show in ITC reports.
I am confused about when reverse charge is applicable. Can you explain the reverse charge concept and rules in GST?
Reverse charges refers to the mechanism where the liability to pay tax is on the recipient of the goods or services instead of the supplier. In transaction, the supplier is responsible for collecting and remitting the GST to the government. However, under reverse charge, the recipient becomes liable for the payment of GST. For detailed guidance on the applicability and rules of Reverse Charge Mechanism in GST, it is advisable to consult with a tax professional.
How can I generate a summary of all RCM entries for a particular month?
To generate All RCM Entries for a particular month. Kindly follow the following Steps:
Step 1: To check RCM report Go to Transactions Menu click on GST Misc. Utilities option.
Step 2: Check/Post Consolidated RCM Payable and select the option Monthly Basis or Daily Basis.
Step 3: If selected RCM payable Monthly Basis select Month and click on OK.
Step 4: on screen report you can do summary - with ALT + F5, export and filter
How to adjust the RCM entry at the end of the month in BUSY?.
To adjust the RCM entry at the end of the month you need to follow the steps
Step1 Go to transaction menu and click on GST misc utilities
Step2 Click on Check post consolidated RCM
Step3 Select Monthly basis and select the month for which you want to consolidate
Step4 Press F4 to post Consolidated RCM
Step5 fill the necessary details like original invoice number date SAC code tax percentage and save
How do I record RCM expenses for services received from abroad in BUSY?.
To Record RCM expenss for services in BUSY , you can follow the Step
Step 1: Go to the Menu Transction the Purchase Click on Add
Step 2: Enter Voucher Date in Purch Type filed selecr Service Import-RCM then Select the Party Name
Step 3: in ITC Eligibility option Click on Input Servies and reverse Charge filed select Service Import
Step 4: after select relevent detaile service name, amount save the voucher
How do I account for reverse charge and export invoices in BUSY?
To account for reverse charge in BUSY, you can add it in the purchase/payment/general voucher. However, reverse charge is usually not added in sales invoices.
For export invoices, you can create them in BUSY. You can select the appropriate sales type (zero rated, nil rated, or taxable) and fill in the necessary details such as transport and port codes. You can also track the status of your exported invoices and generate reports related to them in BUSY.