7. What circumstanaces to use tax code SV and SVA for Credit Note?

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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