G.S.T. Credits

After setting up the Tax Table, Tax Names and Tax Number, the Setup Wizard's Tax Credit command provided the ability to create, view and edit the tax rates and dates that are used for G.S.T credits on bills and journal entries. The first entry (yyyy/mm/dd) in the list on the right hand side of the window shows the G.S.T. rate that previous versions of System Five used for calculating G.S.T. credits. Subsequent entries show the date the rates were changed (set up in the Tax Table).

Note that the most current date entry in the list is the rate being used for the tax credit.

Access

To maintain tax credits, select Setup Tools> Setup Wizard> Taxes> Tax Credits. The G.S.T. Credits window shown in Figure 1 appears.

Figure 1: The Tax Credits window

To specify tax credit information

Enter information in the following text boxes and then click [Close] to accept your settings and close the Setup Wizard:

• Ledger Number for G.S.T. Credits: The system uses the first tax rate found in the Tax Table with a Ledger 2 value that matches the Ledger Number for G.S.T. Credits in this window. To ensure that the correct tax rate is used for G.S.T. credit calculations, you must make sure that the Ledger 2 value for G.S.T. in the Tax Table matches the Ledger Number for G.S.T. Credits on this window. Also, if in the Tax Table setup you use multiple tax zones with different tax rates for the same tax type, the Ledger 2 cell for each tax zone must remain clear (except one with the correct rate).
• Ledger Number for G.S.T. Payable: This should match the Ledger 2 value found in the Tax Table. This value is used to determine which tax (1-8) is the G.S.T. Tax Number for reporting on G.S.T. reports. The actual tax ledger number must be set in the Tax Table.
• G.S.T. Rate: This rate should match the G.S.T. tax rate found in the Tax Table. However, the value entered here is used for a default, for example, in the case of back-dated bills and journal entries where the date falls in a period where no rate was specified.
• Tax Name: The default matches the tax name found in the Tax Names for the tax flagged as the G.S.T. (credits) in the Tax Table. However, it is the name for the G.S.T. payable to the government (not received from customers) and appears on bills and journal entries. Therefore, changing the name here does not change the name in Tax Names.
   

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