Rules of the Ministry of the Finance on Accounting Treatments of Consumption Tax
Rules of the Ministry of the Finance on Accounting Treatments of Consumption Tax
Rules of the Ministry of the Finance on Accounting Treatments of Consumption Tax
Cai Kuai Zi [1993] No.83
December 30, 1993
The Interim Regulations of the People's Republic of China on Consumption Tax has been promulgated by the State Council. The provisions concerning the accounting treatments are stipulated as follows:
I. Enterprises which are subject to Consumption Tax shall add an itemized "Consumption Tax payable" account under the account titled "Taxes payable" for accounting purpose.
II. Enterprises shall, when selling consumer goods produced by them that are subject to Consumption Tax, debit the amount of Consumption Tax payable in the account titled "Product sale tax and surtax" and credit the the amount in the account titled "Taxes payable - Consumption Tax payable". When Consumption Tax is actually paid , debit the amount in the account titled "Taxes payable - Consumption Tax payable " and credit the amount in the account titled "Cash in bank". For return of goods sold or refund of tax, accounting entries to the contrary shall be made. If the taxable consumer goods exported by an enterprise does not enjoy tax exemption or tax refund as required, they shall be treated as domestic sales and the accounting thereof shall be handled in accordance with the provisions of the proceeding paragraph.
III. For Consumption Tax that shall be paid in accordance with the provisions by an enterprise which uses self-produced taxable consumer goods as investment, the enterprise shall debit the amount in the account titled "Long-term investment" and credit the amount in the account titled "Taxes payable - Consumption Tax payable".
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Cai Kuai Zi [1993] No.83
December 30, 1993
The Interim Regulations of the People's Republic of China on Consumption Tax has been promulgated by the State Council. The provisions concerning the accounting treatments are stipulated as follows:
I. Enterprises which are subject to Consumption Tax shall add an itemized "Consumption Tax payable" account under the account titled "Taxes payable" for accounting purpose.
II. Enterprises shall, when selling consumer goods produced by them that are subject to Consumption Tax, debit the amount of Consumption Tax payable in the account titled "Product sale tax and surtax" and credit the the amount in the account titled "Taxes payable - Consumption Tax payable". When Consumption Tax is actually paid , debit the amount in the account titled "Taxes payable - Consumption Tax payable " and credit the amount in the account titled "Cash in bank". For return of goods sold or refund of tax, accounting entries to the contrary shall be made. If the taxable consumer goods exported by an enterprise does not enjoy tax exemption or tax refund as required, they shall be treated as domestic sales and the accounting thereof shall be handled in accordance with the provisions of the proceeding paragraph.
III. For Consumption Tax that shall be paid in accordance with the provisions by an enterprise which uses self-produced taxable consumer goods as investment, the enterprise shall debit the amount in the account titled "Long-term investment" and credit the amount in the account titled "Taxes payable - Consumption Tax payable".
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