Excess Sales Tax paid

[PONNADA B K RAVIKUMAR]

Dear Sir, We paid excess local sales tax for the year 2004-05, and we debited to Sales tax paid, now we got the refund , so which account we have to give credit, sales tax paid or other income. Pls confirm sir

AI Summary

Refund of Excess Local Sales Tax from 2004-05 Should Be Credited to 'Refund of Sales Tax' Under 'Other Income' A query was raised regarding the appropriate accounting treatment for a refund of excess local sales tax paid in the year 2004-05. The individual sought advice on whether to credit the refund to the 'Sales Tax Paid' account or 'Other Income.' The response advised crediting the refund to the 'Refund of Sales Tax' account under 'Other Income.'