10. What is the double entry for service tax invoice and CN issued using SV tax code?

Answer:

1. Full Service Tax Invoice issue

GL Acc	Desciption	Tax	DR	CR
300-A0001	Customer ABC		1060.00
500-000	Service Sales	SV		1000.00
SST-203	SST - Deferred Tax	SV		60.00

2. Partial Payment knock-off with invoice

GL Acc	Desciption	Tax	DR	CR
330-000	BANK		530.00
300-A0001	Customer ABC			530.00

System auto reverse the SST-Deferred Tax after knock-off

GL Acc	Desciption	Tax	DR	CR
SST-203	SST - Deferred Tax		30.00
SST-202	SST - Service Tax			30.00

3. Reduce/cancel the partly of the service amount. Issue CN using tax code: SV

GL Acc	Desciption	Tax	DR	CR
500-000	Service Sales	SV	500.00
SST-203	SST - Deferred Tax	SV	30.00
300-A0001	Customer ABC			530.00

Conclusion:

1. SST Deferred Tax account = ZERO if the Full Service Tax Invoice (eg. SV only) outstanding is ZERO.
2. SST Deferred Tax account <> ZERO if the service tax invoice has mixed tax type (eg. ST, SV and empty tax code).