The accounting treatment of business tax is generally divided into three parts:
(1) Enterprises calculate the amount of business tax payable based on their turnover and the prescribed tax rate.
(2) According to the calculated business tax amount, the enterprise remits the payable tax.
(3) At the end of the accounting period, the accrued taxes are transferred to "current period income and expenses" for calculating the annual profit.
(One) Transportation Industry
1. Account Setup
For the calculation of business tax in the transportation industry, accounts such as "Business Tax and Surcharges", "Transportation Tax and Surcharges" (for railway transportation enterprises), "Other Payables", and "Taxes Payable - Business Tax Payable" should generally be established.
2. Accounting Treatment: