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

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Issue:

Service tax is based on payment basis.


Solution:

There will be 2 cases of service tax where 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