cash income from selling scraps
The cash income from the sale of leftover materials belongs to the value-added tax income, which needs to be paid according to the law. The price collected is the price including tax. In actual work, some companies deposited this income into private accounts. A few of them were used for employee benefits, and a few were used to pay management fees. Most of them were used for eating, drinking, and gifting. These companies didn't count it as income and calculate the output tax according to the regulations, which was not in line with tax regulations. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
The income tax rate of the company selling scraps
The value-added tax rate of the company's sales of leftover materials needs to be differentiated: 1. If it is a waste of agricultural products, the sales income of scraps will be calculated at a tax rate of 13%. 2. If the sales income of waste and scraps that did not belong to agricultural products was calculated and paid at a tax rate of 17%, the current applicable tax rate was 13%. 3. The scraps produced by the enterprise during the production process belong to the scope of goods under the value-added tax. If it does not belong to a specific situation, it should still pay the value-added tax according to the applicable tax rate. 4. For ordinary tax collectors who sell their own used fixed assets that cannot be deducted from the input tax according to the regulations and have not been deducted from the input tax, the value-added tax shall be levied at a simple rate of 4% by half. However, scraps were not in this situation. 5. If the applicable tax rate for the products produced by the enterprise is 16%, and the raw materials purchased are 10%, the enterprise must pay the value-added tax according to the applicable tax rate of 16%. However, the current value-added tax rate has been adjusted. 6. Previously, some companies calculated and paid value-added tax at a tax rate of 16%, but the tax rate was different now. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
Selling scraps
Generally speaking, when a tax collector sold scraps, he could issue a special value-added tax receipt, and the receipt must be issued. The receiver of the special receipt could deduct the income. If it is a processing trade enterprise, with the permission of the customs, it can entrust an auction agency with legal qualifications to publicly auction the processing trade scraps through the auction platform connected to the customs, such as processing trade scraps, by-products and disaster-stricken bonded goods that need to be levied with residual value according to regulations, as well as bonded goods such as scraps, waste products, defective products and by-products produced during the bonded processing of enterprises in the special supervision area of the customs. Enterprise can log in to China International Trade Single Window <strong> Business application></strong><strong> Standard version application><strong> Bonded trade></strong></strong><strong><strong> Online auction of leftover materials. Enter the login password with the electronic port operator card to log in to the system. According to the requirements of the domestic tax declaration, enter the relevant information of the online auction and submit the application for the online auction of the processing trade scraps. After the competent customs checks it, the results will be fed back to the enterprise and transmitted to the transaction end of the transaction system simultaneously. The company can check the customs review status and auction results in a single window in real time. In addition, there were also cases where companies or individuals directly purchased scrap materials. For example, some people around Qujing purchased various scrap materials (such as bark, tree trunks, and other wood scrap materials) for firewood and other purposes with large amounts of cash. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
Selling fabric scraps
There were some ways to sell fabric scraps. For example, in some areas, there are specialized manufacturers that supply cloth waste scraps and related products. For example, Shaoxing City provides new machine cleaning cloth, large pieces of polyester-cotton waste cloth, oil-absorbing cotton rags, non-shedding cloth, industrial rag scraps, and the price is 7.9 yuan. Yiwu City also sells new machine cleaning cloth, large pieces of polyester-cotton waste cloth, oil-absorbing cotton rags, non-shedding cloth, industrial rag scraps, and the price is 2.9 yuan. In addition, they could also be sold through bidding, such as cotton plain knitted fabric scraps, spun cotton and chemical fiber blended elastic knitted fabric scraps, cotton elastic plain knitted fabric scraps, etc. These scraps were produced when cutting the fabric. The color was uncertain, the shape was irregular, and there were no flaws. The intended recipient needed to have the recycling qualification of the target object and the corresponding production and processing type, good business reputation, financial status, and payment ability. In addition, the human resources needed to be arranged according to the requirements of the transferring party. vehicles, tools, and timely packing and clearing of goods. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
How to account for the income from the sale of scraps
If the company sells the leftover materials generated from the production of products, it should be included in other business income. If it is the income from the disposal of the scrapped fixed assets, it should be included in the fixed assets disposal account. If it was the disposal of scrapped raw materials and packaging materials, the accounting entries would be: borrow: cash or bank deposits, loan: other business income, taxes payable-vat payable-sales tax; if it was the disposal of waste newspapers, the accounting entries would be: borrow: cash or bank deposits, loan: non-operating income-income from disposal of current assets. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
Sales scraps are recorded as non-operating income
This statement was not completely correct. The sales revenue of leftover materials was usually recorded in the following ways: 1. If the company considered the sale of scraps as a business related to daily business activities but not often, then it should be recorded as other business income, such as the sale of leftover scraps from the production of products by manufacturing companies, which is similar to the income of enterprises engaged in sideline business. 2. In some special cases, such as the leftover bits and pieces of the processing customer, due to the lack of input receipt for the materials, etc., it may be included in the non-operating income, but it must also be recognized as value-added tax. However, this was a special case and was not generally applicable to the accounting of all leftover materials. 3. There was also a view that if the steel processing scraps (scrap) were regarded as non-"daily" business activities and belonged to contract losses, they should not be deducted from costs and should be included in non-operating income. However, the sales revenue of scrap could also be included in other business income. In general, sales scraps could not be simply recorded as non-operating income. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
Value added tax on selling scraps
Generally speaking, when a tax collector sells scraps, he can issue a special value-added tax receipt and must issue a receipt. The other party can deduct the amount. The tax rate for the sales of leftover materials by ordinary tax collectors is usually levied according to the standards stipulated in the Law of the People's Republic of China on the Administration of the Collection of Taxes. The tax rate for leftover materials in the value-added tax is 17%, but there are different regulations in different situations: 1. If the products produced and the raw materials consumed are subject to different value-added tax rates, the higher value-added tax rate shall be applied. For example, the applicable tax rate for the products produced by the enterprise was 16%, while the purchased raw materials were 13%. Therefore, the enterprise selling scrap products must pay the value-added tax according to the applicable tax rate of 16%. 2. The enterprise's production and purchase of raw materials were deducted from the input tax according to the relevant regulations. Therefore, regardless of whether it was the sale of waste products or waste materials, they had to pay the value-added tax according to the applicable tax rate of the same kind of products produced by the enterprise. 3. Generally speaking, the general tax rate of 13% was applicable to the sale of goods or the provision of repair services. Ordinary consulting services and technical services were generally 6%. There were also simple collections that could be paid at 3% value-added tax. The provision of construction services was generally 9%. The sales revenue of the enterprise selling waste products must be paid according to the value-added tax of the similar products produced by the enterprise. In addition, when the enterprise deals with the scraps produced in the production process, it should calculate and pay the value-added tax on the income obtained from the processing of the scraps and issue an inventory. At the end of the year, it should also transfer other business income into the profit of the year to calculate and pay the enterprise income tax. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
The profit from selling scraps belongs to
The income from selling scraps belonged to other business income. This account was used to calculate the income from daily activities such as selling goods, providing labor services, and transferring the right to use assets, such as the sales of materials and packaging, the transfer of intangible assets, the rental of fixed assets, the rental of packaging, transportation, and the sales of waste materials. The income from the sale of scraps met its characteristics. For small-scale enterprises, bank deposits are debited and other business income is credited during accounting; for general tax-paying enterprises (tax rate 17%), bank deposits are debited and other business income and taxes payable-value added tax (output tax) are credited. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
Entry of income from selling scrap
1. If it was an ordinary tax collector: - When the waste was accounted for as other business income: - Borrow: cash on hand Credits: Other business income Taxes Payable-Value Added Taxes Payable (output tax) - When waste is accounted for as non-operating income: - Borrow: cash on hand Credits: Non-operating income Taxes Payable-Value Added Taxes Payable (output tax) 2. If it was a small-scale tax collector: - Borrow: cash on hand Credits: Non-operating income Taxes Payable-Value Added Taxes Payable The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
What's the vat rate for selling scraps?
When a normal tax collector sells scraps: - If the sales of goods or the provision of repair services are related to scrap materials, a 13% value-added tax rate will apply; - If it is a waste generated during the process of providing construction services, a tax rate of 9% will apply; - If it is a waste related to ordinary consulting services and technical services, the tax rate is 6%; - There was also a simple levy that could be paid at 3% of the value added tax. Small-scale tax collectors would pay 3% of value-added tax on the sale of waste products (scraps). In addition, if the products produced and the raw materials consumed are subject to different value-added tax rates, the higher the value-added tax rate shall be applied. The enterprise's production and purchase of raw materials shall be deducted from the input tax according to the relevant regulations. Then, regardless of the sales of waste products or waste materials, the value-added tax shall be calculated and paid according to the applicable tax rate of the same kind of products produced by the enterprise. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!
Entry of the factory's income from selling scrap
If it was an ordinary tax collector, the accounting entry would be: Borrow: cash or bank account Credits: Other business income Taxes payable-value added tax-output tax. If the waste income is accounted for through the non-operating income account (although this method is not wrong, it needs to be transferred out of the input tax or calculated as the output tax), for an ordinary tax collector, the entry is: Borrow: cash on hand Credits: Non-operating income Taxes payable-value added tax (output tax); for small-scale tax-holders: Borrow: cash Credits: Non-operating income Taxes Payable-Value Added Taxes Payable If it is the disposal income of the scrapped fixed assets, it should be included in the fixed assets disposal account. The novel "Ledge" is equally exciting. Everyone is welcome to click and read it!