7. What circumstanaces to use tax code SV and SVA for Credit Note?: Difference between revisions
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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 | |||
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 /> | ||
Line 11: | Line 13: | ||
: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 /> | ||
:* | :* 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).
- Cancellation of service before any payment.
- 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
- Cancellation of service after payment and service tax has been paid to RMCD.