Remitting Sales Tax


Each month, before the 20th, IU is required to report and to remit the sales tax (7%) collected in the prior month to the State of Indiana. Sales tax reporting is expected to be done timely. Any tax collected should be reported in KFS by the 5th day of the month following the sale date. In order to record the sales tax information in a uniform manner, there is a “Tax Information” line associated with several KFS documents. It is currently being used in the CR, GEC, DI, IB, DV, SB, YEDI and YEGE documents. Use the example for instruction on remitting sales tax.


Example

Ballentine Dining Hall sells to students and the general public. Of the $302.89 total gross sales, $227.89 is to students. The $75.00 of taxable sales is to staff, faculty and the general public. Food sales to students are exempt from sales tax and would not be included in taxable sales. The cash receipt example is broken down below:

Receipts

A. Gross Sales  B. Taxable Sales  C. Sales Tax %

D. Total Sales Tax

(B * C)

Cash Receipts

(A + D)

Cash

302.89

75.00

7%

5.25

308.14

 

 

 

 

 

The “Tax Information” line will automatically appear below any tax accounting line when you use the 9015 object code in combination with one of these accounts:

Chart

Account #

Object Code

Description

UA

9612779

9015

Sales Tax

UA

9612703

9015

Innkeepers Tax – Morgan Co.

UA

9612704

9015

Innkeepers Tax – IU

UA

9612705

9015

Innkeepers Tax - IUSB

UA

9612706

9015

Innkeepers Tax – IUB Halls of Residence

UA

9612707

9015

Montana Innkeepers Tax

UA

9612711

9015

Innkeepers Tax – IUPUI Halls of Residence

 

The following information must be entered in the “Tax Information” line:

A. Chart of Account for account number where sales revenue was recorded (not 96127XX)
B. Account number where sales revenue was recorded (not 96127XX)
C. Gross Sales (total sales amount not including the sales tax collected)
D. Taxable Sales (All sales that are not exempt)
E. The sale date of the revenue being recorded