Difference between revisions of "7. What circumstanaces to use tax code SV and SVA for Credit Note?"

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<big>'''Issue:'''</big>  
 
<big>'''Issue:'''</big>  
:Service tax is based on payment basis.  
+
:Service tax is based on payment basis.
 +
<br />
  
 
<big>'''Solution:'''</big>  
 
<big>'''Solution:'''</big>  
There will be 2 cases of service tax when credit note has taken in place: <br />
+
 
 +
There will be 2 cases of service tax where credit note has taken in place: <br />
 
:1. '''Unpaid service tax'''<br />
 
:1. '''Unpaid service tax'''<br />
* Cancellation of service before any payment. <br />
+
:* Cancellation of service '''before any payment'''. <br />
* use tax code: '''SV'''  (follow the invoice tax code, eg. SV)<br />
+
:* use tax code: '''SV'''  (follow the invoice tax code, eg. SV)<br />
*  system will '''auto reverse the unpaid service tax amount''' in the '''SST - Deferred Tax (SST-203)'''.<br />
+
:*  system will '''auto reverse the unpaid service tax amount''' in the '''SST - Deferred Tax (SST-203)'''.<br />
 
<br />
 
<br />
 
:2. '''Paid service tax'''<br />
 
:2. '''Paid service tax'''<br />
* Cancellation of service after payment and service tax has been paid to RMCD.<br />
+
:* Cancellation of service '''after payment and service tax has been paid''' to RMCD.<br />
* Seek for refund of service tax approved by RMCD. <br />
+
:* Adjustment tax deduction for refund of service tax approved by RMCD. <br />
* use tax code: '''SVA'''<br />
+
:* use tax code: '''SVA'''<br />
* system will reduce the service tax payable to RMCD<br />
+
:* system will reduce the service tax payable to RMCD<br />

Latest revision as of 04:16, 31 January 2020

Issue:

Service tax is based on payment basis.


Solution:

There will be 2 cases of service tax where credit note has taken in place:

1. Unpaid service tax
  • Cancellation of service before any payment.
  • use tax code: SV (follow the invoice tax code, eg. SV)
  • system will auto reverse the unpaid service tax amount in the SST - Deferred Tax (SST-203).


2. Paid service tax
  • Cancellation of service after payment and service tax has been paid to RMCD.
  • Adjustment tax deduction for refund of service tax approved by RMCD.
  • use tax code: SVA
  • system will reduce the service tax payable to RMCD