Allocate net GST paid amount
Hi all, I am allocating transaction in bank feed, we paid the difference between Collected GST and paid GST, is this should be allocated into PAYG payable? If I paid for couple of months, do I need...
Forum Discussion
hi Zoey667
when you lodge a BAS or IAS is is always best to do an entry from a liability account called ATO Integrated Client Account (with the account type of credit card). This will become very helpful if you ever need to set up a payment plan with the ATO.
When you do the BAS or IAS, you spend, or receive (if getting a refund) to that account. The total amount spent wiil be what is due. Lets say $10,000. This is made up of $20,000 GST collected, $10,000 GST paid, PAYGW of $2,000 and a fuel tax credit being claimed of $2,000.
Your allocation there is
GST Collected liability account $20,000
GST paid liability account -$10,000
PAYG payable liability account $2,000
Fuel Tax credit income account -$2,000
Then when the payment is made, whether two months worth or one month worth you allocate to the ATO integrated liabilty account.
Like I said, very helpful if you made a plane to pay the $10,000 off at $1,000 a month. Each repayment reduces what the balance sheet says is owing to the ATO, and you reconcile that account as you do a bank amount, but manually, making sure to manually record any interest charged by the ato as an expense, and any interest mention as a remission as income.
