Accounting Basis

–Service Tax:

• Payment basis

–Service Tax required to be accounted:

• At the time when the payments is received on the day following period of 12 month when any whole or part of the payment is not received from the date of the invoice for the taxable service provided

Steps to run SST Processor:

1. Rerun Wizard for Configure Malaysia SST, this is to generate GL Code for SST Control Account
2. Click New button in SST Processor
3. A success message will appear if process successfully
4. SST-02 will then be generated
5. Commit your SST Return upon submission & a Journal will be generated

Scenario 1: Full Payment

Invoice-1 with total RM6,360 (RM6,000+ Tax RM360)

Payment-1 with amount of RM6,360

Payment-1 Tax Collected=RM360

Scenario 2: Partial Payment

Invoice-1 with total RM6,360 same as scenario 1

Payment-2 with amount of RM2,000

Payment-2 Tax Collected (Pro-rated)

=2,000/6,360*360

=RM113.21

Scenario 3: CN

Invoice-1 with total RM6,360 same as scenario 1

CN-1 with total RM636 (RM600+Tax RM36)

CN-1 Tax Collected, Note that calculation of CN involved 2 parts:

1) Details of CN= -RM36 (Negative due to it is CN)

2) Know of details of CN will be treated as payment (Pro-rated)

=636/6,360*360

=RM36 Total Tax

= -36+36=RM0

Scenario 4: CN (No Tax) with Payment

Invoice-2 with total RM1,030 (Item 1 RM500 + Tax RM30 and Item 2 RM500 no tax)

Payment-4 with amount of RM530

CN-2 with total RM500 (No Tax)

Tax Collected Payment (Pro-rated)

=530/1,030*30

=RM15.44

CN involves 2 parts:

1) Details of CN=RM0

2) Knock of details of CN will be treated as payment (Pro-rated)

Scenario 5: CN (With Tax) & Payment

=500/1,030*30

=RM14.56

Total Tax=15.44+14.56=RM30