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

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

Revision as of 04:08, 31 January 2020

Issue:

Service tax is based on payment basis.

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

1. Unpaid service tax
  1. Cancellation of service before any payment.
  2. use tax code: SV (follow the invoice tax code, eg. SV)
  3. system will auto reverse the unpaid service tax amount in the SST - Deferred Tax (SST-203).
2. Paid service tax
  1. Cancellation of service after payment and service tax has been paid to RMCD.
  2. seek for refund of service tax approved by RMCD.
  3. use tax code: SVA
  4. system will reduce the service tax payable to RMCD