营业税会计处理办法

Accounting Treatments of Business Tax


The < provisional Regulations of the People's Repu
blic of China on Business Tax > has been promulgat
ed by the State Council. The provisions concerning
accounting treatment are stipulated as follows:

1. Business tax payable by enterprises shall be re
corded under the account titled "Tax payable-Busin
ess Tax payable".

2. Enterprises shall calculate Business Tax payabl
e based on the turnover and the prescribed tax rat
e, debit to the accounts titled"Business tax and s
urtax" (financial and insurance enterprises, trave
l and catering service enterprises, posts and tele
communication enterprises, civil airline and agric
ultural enterprises), "Operation tax and surtax"
(real estate development enterprises), "Transporta
tion business tax and surtax" (transportation and
communication enterprises),"Transport tax and surt
ax"(railway transport enterprises), "Project tax a
nd surtax" (construction enterprises), "Operating
cost" (foreign economic enterprises), etc.; credit
to the account titled "Tax payable-Business Tax p
ayable ". In handing over Business Tax to the gove
rnment, they should debit to the account titled "T
ax payable-Business Tax payable" and credit to acc
ount such as "Cash in bank", etc.

3.For financial enterprises which have been entrus
ted by other enterprises to issue loans, upon rece
ipt of the intersts of such loans, shall debit the
interests to the account titled"Cash in bank" or
other accounts of the deposits of the relevant ent
erprises and credit to the account titled "Account
s payable-interest payable on entrusted loans"; in
calculating the business tax to be withheld, shal
l debit to the account titled "Accounts payable-in
terest payable on entrusted loans" and credit to t
he account titled "Tax payable-Business Tax payabl
e". In settling Business Tax on behalf of customer
s, financial enterprises shall debit to the accoun
t titled "Tax payable-Business Tax payable" and cr
edit to accounts such as "Cash in bank", "Financia
l deposit", ect.

When contracting or sub-contracting is applied in
the construction and installation business, the ma
in contractor shall withhold and pay Business Tax
on behalf of the sub-contractors. Upon receipt of
the contract sum, the main contractor shall calcul
ate and withhold the Business Tax in accordance wi
th the contract sum due to the sub-contracting uni
ts or sub-contractors, debit the amount to the acc
ount titled"Accounts payable " and credit to the a
ccount titled "Tax payable -Business Tax payable",
For settlement of the Business Tax on behalf of t
he sub-contractors, the main contractor shall debi
t the amount to the account titled "Tax payable-Bu
siness Tax payable" and credit it to the account t
itled "Cash in bank".

4. Enterprises selling immovable properties should
record the Business Tax calculated according to t
he amount of sales under the account of disposal o
f fixed assets, debit to the account titled "Dispo
sal of fixed assets" and credit to the account tit
led "Tax payable-Business Tax payable" (the calcul
ation of Business Tax payable by real estate devel
opment enterprises in managing immovable proerties
shall be in accordance with Item 2 of these provi
sions). When settling Business Tax, shall debit to
the account titled "Tax payable-Business Tax paya
ble" and credit to the account titled "Cash in ban
k".

5. Enterprises selling intangible assets shall rec
ord Business Tax calculated according to the amoun
t of sales under accounts such as "Other business
expenditures", ect.debit the amount to accounts su
ch as "Other business expenditures", "Other operat
ing expenses" (financial and insurance enterprises
), "Operating costs" (foreign economic enterprises
), etc.; credit to the account titled "Tax payable
-Business Tax payable", When settling Business Tax
, shall of debit to the account titled "Tax payabl
e-Business Tax payable", and credit to the account
s such as "Cash in bank", etc.