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Effect on
cross charge
transactions
under GST
Tax July 2016KPMG.com/inIntroduction
In this edition of GST updates, we shall analyze (a) the
tax ability of typical transactions between a head office
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How to fill out cross-charge
How to fill out cross-charge
01
Step 1: Gather all necessary information such as the recipient's name, account number, and amount to be charged.
02
Step 2: Log in to your online banking or financial platform.
03
Step 3: Navigate to the cross-charge or transfer section.
04
Step 4: Enter the recipient's account details and the amount to be charged.
05
Step 5: Review all the information entered for accuracy.
06
Step 6: Confirm the cross-charge transaction.
07
Step 7: Keep a record of the transaction for future reference.
Who needs cross-charge?
01
Businesses or individuals who need to transfer funds from one account to another within the same financial institution.
02
People who frequently need to make payments or settle bills for goods or services.
03
Individuals who want to transfer money to another person's account as a form of payment or reimbursement.
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What is cross-charge?
Cross-charging is the process of allocating costs or expenses incurred by one department to another department within the same organization.
Who is required to file cross-charge?
Departments within the same organization that incur expenses and need to allocate them to other departments are required to file cross-charges.
How to fill out cross-charge?
To fill out a cross-charge, departments need to accurately record the expenses incurred, determine the appropriate allocation method, and submit the cross-charge to the accounting or finance department for processing.
What is the purpose of cross-charge?
The purpose of cross-charging is to ensure that costs are accurately allocated between departments, providing transparency and accountability for expenses within the organization.
What information must be reported on cross-charge?
Cross-charges must include details of the expenses incurred, the departments involved, the allocation method used, and any supporting documentation to justify the allocation.
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