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

Revision as of 04:14, 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

@@ Line 5: / Line 5: @@
 There will be 2 cases of service tax when credit note has taken in place: <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 />
 :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 />