7. What circumstanaces to use tax code SV and SVA for Credit Note?
From eStream Software
- Service tax is based on payment basis.
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