SST-Account for Pending Service Tax over 12 months

From eStream Software

Introduction

Service Tax required to be accounted if on the day following period of 12 month when any whole or part of the payment is not received from the date of the invoice for the taxable service provided.


Journal Entry Adjustment

Pending service tax to be paid

1. Create the following GL Account.
GL Acc Description Account Type
SST-PRE SST - PENDING SERVICE TAX PREPAID CURRENT ASSETS


2. Follow the double entry below to create Journal Entry.
GL Code GL Description Local DR Local CR Add to Final GST-03
GST-202 GST - Sales Deferred Tax 3,600
GST-KASTAM GST - Payable (KASTAM) 3,600 5(b), 18


See also