Special Treatment for Entrusted Processing of Gold and Silver Jewelry
The Ministry of Finance and the State Administration of Taxation issued the "Notice on Issues Concerning Adjustments to the Consumption Tax on Gold and Silver Jewelry" ([1994] No. 095 ) stipulates that if an entity or individual other than a gold and silver jewelry business unit approved by the People's Bank of China is entrusted to process gold and silver jewelry products, the entrusted party shall be the taxpayer. The original regulation that the entrusting party is always the taxpayer and the entrusted party withholds and pays taxes has been changed. Due to changes in taxpayers, accounting treatment methods have also been changed accordingly.
First, the income obtained by the production enterprise from entrusted processing of gold and silver jewelry products should be included in the product sales revenue, consumption tax should be accrued according to regulations, the "product sales tax and surcharge" account should be debited, and the "should be credited" Tax payment - consumption tax payable" account.
Second, the income obtained by commodity wholesale and retail enterprises from entrusted processing of gold and silver jewelry products should be included in other business income, and consumption tax should be accrued in accordance with regulations. The "other business income" account should be debited and "other business income" should be credited. Taxes Payable - Consumption Tax Payable" account.
Thirdly, the entrusting party shall not deduct the consumption tax paid on the jewelery and jade recovered by entrustment processing when calculating tax. payment.
Here are some examples:
Company A entrusts Company B to process a batch of taxable consumer goods. The cost of materials provided by Company A is 50,000 yuan, and the processing fee paid to Company B is 4,000 yuan. , Enterprises A and B are both general taxpayers of value-added tax. When enterprise A pays the processing fee, it also pays the value-added tax of 680 yuan for the processing fee. The taxable consumer goods do not have the sales price of Party B's similar consumer goods. After Company A takes back the taxable consumer goods for entrusted processing, one-third will be used for direct external sales, and two-thirds will be used for the company's continuous production of taxable consumer goods. The entrusted processing is taxable The applicable tax rate for consumer goods is 10%.
Calculation of the consumption tax that Enterprise B should withhold and pay:
Composition tax price = (50000 + 4000) ÷ (1-10%) = 60,000 yuan
Withholding and payment of consumption tax = 60,000 × 10% = 6,000 yuan
The accounting entries are: When withholding and payment of consumption tax:
Debit: Accounts receivable 6,000
Credit: Tax payable - Consumption tax payable 6,000
When processing fee and output tax are received:
Debit: Bank deposit 4,680
Credit: Other business income 4,000
Taxes payable - Value-added tax payable (output tax) 680
The accounting treatment of Company A is: When providing processing materials:
Debit: 50,000 for entrusted processing of products
Loan: 50,000 for raw materials
When paying processing fees and value-added tax:
Debit: 50,000 for entrustment Processed products 4000
Taxes payable - value-added tax payable (input tax) 680
Credit: bank deposit 4680
The processing consumption tax borne by Enterprise A is 3 Two-thirds can be deducted, and one-third is transferred to production costs:
Debit: 2,000 commissioned processing products
Taxes payable - Consumption tax payable 4,000
Credit: Accounts payable 6,000
When Enterprise A takes back the taxable consumer goods entrusted for processing:
Debit: Finished goods 56,000
Credit: Entrusted processing Product 56000