10. What is the double entry for service tax invoice and CN issued using SV tax code?
From eStream Software
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
- SST Deferred Tax account = ZERO if the Full Service Tax Invoice (eg. SV only) outstanding is ZERO.
- SST Deferred Tax account <> ZERO if the service tax invoice has mixed tax type (eg. ST, SV and empty tax code).