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If a supplier is not registered so what entry would he record in his book for the transaction.
Sold goods for 120 (inclusive of sales tax) on cash.
Sales tax is 20%.
Tutor will he record it as:
(A) Dr A/R 120 Cr Sales 120
(B) Dr Account Receivable 100 Cr Sales 100
Which one of them?If the supplier is not registered for sales tax then he will not charge sales tax!!!
Tutor when customer is not registered for sales tax so will he pay or not?
If they are not registered for sales tax then they do not charge sales tax to their customers.
They will be charged sales tax on what they buy, but they cannot get the tax back from the state.
This is all explained in my free lectures on sales tax!!
Thank you tutor. Sorry I still have not seen your sales tax lecture. I will now go through it.
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