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What is Reverse Charge Mechanism?
In the Forward Charge, the supplier of goods or services is responsible to pay tax to the government. However, under reverse charge mechanism the buyer or the recipient is liable to pay the tax to government. The main difference between Forward Charge and Reverse Charge is that the buyer of goods or services is responsible to pay tax to government instead of the supplier. Also, the tax under reverse charge mechanism is considered as non-refundable tax.
How is Reverse Charge Mechanism used in Kpi.com?
In Kpi.com, the only thing that you should do is to tick “Reverse Charge Applicable” in Financial Information of the supplier in Supplier Center. All Purchase transactions related to this supplier will be recorded under reverse charge mechanism.
See also
- Purchase Order for Fixed Assets
- Goods Delivered Notes
- Sales Quote
- Sales Order
- Sales Invoice
- Recurring Invoice
- Request for quote
- Request for purchase
- Purchase Order
- Purchase Invoice
- Recurring Bills
- Fixed Assets
- Company Expense Claims
- Employee Expense Claims
- Customer Center
- Supplier Center
- Products & Services Overview
- Bank Accounts
- Supplier Access
- Setting Barcode for a Product
- Items Table
- Run Time Calculation of Exchange gain/loss
- Exporting to Excel and PDF
- Timesheet Invoice
- Budget per Department
- VAT Return
- Bank reconcilation
- Dividends Payable
- Assembly Products
- Add New Assembly Item
- What is Non-Inventory Item?
- Add New Non-Inventory Item
- FIFO method of inventory valuation
- What is Inventory Item?
- Add New Inventory Item
- Products/Services Import
- Add New Product/Service
- Intercompany Purchases
- Creating Intercompany Sales Invoice
- Intercompany Sales
- Workflow of Expense Claims
- Purchases / Bills Overview
- Timesheet based Invoice
- Progress Invoicing
- How to convert Sales Quote to Order, Invoice & Project
- Sales Overview
- Serial Numbers
- Accounting Overview
- Landing Cost
- Mark PO as Open
- Purchase Order Actions
- Receive Purchase Order
- Send Purchase Order
- Importing Customer Accounts