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

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Line 12: Line 12:
 
: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 />

Revision as of 04:15, 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.
  • Adjustment tax deduction for refund of service tax approved by RMCD.
  • use tax code: SVA
  • system will reduce the service tax payable to RMCD