Run Non Taxable Services

Taxpayers who engage in non taxable services shall be accounted for separately.

To sum up, we should pay attention to three "two" when we engage in non taxable labour.

(1) the business scope of a taxpayer consists of two businesses, that is, the sale of goods or taxable services, and the provision of non taxable services.

(2) the sale of goods or taxable services and the provision of non taxable services do not occur at the same time.

(3) two kinds of behaviors, such as accounting separately, are subject to two kinds of taxes, VAT and business tax respectively.

[case] A produces and sells aluminum alloy doors and windows, and also operates aluminum alloy doors and windows.

In May 2005, it sold B aluminum alloy doors and windows without tax revenue of 10000 yuan. In June 2005, it installed C aluminum doors and windows for its own company, earning 3000 yuan without tax services.

A company's production, sales and installation business can be separately accounted for.

Analysis: A sales of aluminum alloy doors and windows and installation business occurred in two sales activities in different months, one is the sale of goods, the other is the sale of labor services; the two sales activities are paid separately to B company and C company; the two sales behavior of A company can be accounted for separately, and two kinds of value-added tax and business tax should be separately counted.

From this example, it can be seen that these two sales practices conform to the conditions of three "two". Therefore, the act is a concurrent business rather than a mixed sale.