SST-Account for Pending Service Tax over 12 months

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. For first time, create the following GL Account.

GL Acc	Description	Account Type
SST-PRE	SST - PENDING SERVICE TAX PREPAID	CURRENT ASSETS

2. System will prompt the list of outstanding service invoices has over 12 months when process the SST return.

3. Follow the Service Tax rules, click Pay Pending Service Tax button.

4. Right click on the grid column, select Print Grid.

5. Print out the list of outstanding service invoices for record purpose.

6. Post the journal entry and 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-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

NOTE:
1. Go to SST/GST | Maintain Tax.
2. Look for tax code: SVA.
3. Edit and tick Active.
4. Save it.

7. Next, go to New SST Return. Click Process.

8. At this time, click Continue SST-02.

Payment Recovery for Pending Service Tax Prepaid

1. System will prompt the list of outstanding service invoices has over 12 months when process SST return.

2. Follow the Service Tax rules, click Pay Pending Service Tax button.

4. Right click on the grid column, select Print Grid.

5. Print out the list of the prepayment service invoice which has received payment for record purpose.

6. Post the journal entry and follow the double entry below to recover the service has been paid.

GL Code	GL Description	Tax	Local DR	Local CR	Tax Amount	Local DR (Tax)	Local CR (Tax)
SST-PRE	SST - PENDING SERVICE TAX PREPAIRD	SVA		6,000.00	360.00		10,600.00
SST-PRE	SST - PENDING SERVICE TAX PREPAIRD		6,360.00			6,360.00