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 #

Sub Account

Object Code

Description

UA

9612779

 

9015

Sales Tax - Indiana

UA

9612779

MCFBT

9015

Monroe County 1% Food Beverage Tax

UA

9612773

**see below 9015 Sales Tax - Other

UA

9612701

MORG

9015

Morgan County Innkeepers

UA

9612701

MONR

9015

Monroe County Innkeepers

UA

9612701

STJO

9015

St Joseph County Innkeepers

UA

9612701

MTA

9015

Montana Accommodations

UA

9612701

MARI

9015

Marion County Innkeepers

 

** 9612773 has sub-accounts for all 50 states (Example: AL, AK , IL, WI), DC, and some localities. Please contact taxpayer@iu.edu for instructions.

 

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

A. Chart of Account for account number where sales revenue was recorded (not UA for 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