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

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