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 account the service tax pending over 12 months to be paid.
GL Code GL Description Tax Local DR Local CR Tax Amount Local DR (Tax) Local CR (Tax) SST-02 SST-PRE SST - PENDING SERVICE TAX PREPAIRD 10,600.00 10,600.00 SST-PRE SST - PENDING SERVICE TAX PREPAIRD SVA 10,000.00 600.00 10,600.00 B1_10, B2_11C
NOTE: 1. Go to SST/GST | Maintain Tax. 2. Look for tax code: SVA. 3. Edit and tick Active. 4. Save it.
- 3. Next, go to New SST Return. Click Process.
- 4. At this time, click Continue SST-02.