Reverse Charge Mechanism(RCM)- Input Tax Credit Set off

[former_member596763]

Dear Experts,

In RCM in India when we take Input tax Credit then in which month we should claim it?

What is the Standard Byd practice?

As currently in system i could see that utilization is claimed in same month wherein it should in next month.

Thanks.

Regards,

Rutuja K.

SAP BYD FINANCE

[harsh_p9]

Hello Rutuja,

Configuration for RCM in ByD:

Under Business configuration>>> open activity>>> chart of accounts>>> account determination>>> Tax>>> output tax / input tax>>> deferred tax column Actual output/ input tax GL needs to be mapped.

After doing the above step and posting a AP invoice here let’s take IGST then the journal entry would be

Expense DR
Input IGST DR
Output IGST CR
Accounts payable CR

As per your screenshot, you have maintained the description for Input IGST as Input RCM IGST Tax for the respective G/L account and which is maintained in the deferred tax field of account determination. Hence, it is taking Input RCM IGST Tax G/L account.

You can also refer to the document - https://apps.support.sap.com/sap/support/knowledge/public/en/2657531

Thanks & Regards,

Harsh Patel