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

From eStream Software
Jump to: navigation, search
Line 5: Line 5:
 
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'''<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 />
+
* Seek 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 />

Revision as of 04:09, 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
  • 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.
  • Seek for refund of service tax approved by RMCD.
  • use tax code: SVA
  • system will reduce the service tax payable to RMCD