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How to record tax payments and match them with bank transactions

Tax deducted in the form of Service Tax or VAT is the liability of the business owner towards tax departments and is paid by the business owner to tax agencies. We can record these tax payments in QuickBooks by going to Tax Centre. We have three tax agencies created by QuickBooks by default, Value Added Tax or VAT, Service Tax, and Central Sales Tax or CST, Swachh Bharat Cess and Krishi Kalyan Cess. Starting July 1, you will also see GST in the Taxes tab.

How to enter tax payments for tax agencies in QuickBooks Online

  1. Go to Taxes and it will take you to Tax Centre.
  2. From the Tax dropdown, select one of the following. Alternatively, select the right or left arrows on the carousel to select it.
    • GST
    • Service Tax
    • VAT
    • CST
    • Swachh Bharat Cess
    • Krishi Kalyan Cess
  3. In the Returns section, locate the period for which you want to enter the payment.
  4. In the Action column against this period, select Record payment or the dropdown button, and select Record payment
  5. Depending on the agency for which the payment is being record, the following window payment window will come up asking you to enter payment information.
    • Record GST payment
    • Record Service Tax payment
    • Record VAT payment
    • Record CST payment
    • Record Swachh Bharat Cess payment
    • Record Krishi Kalyan Cess payment.
  6. For GST, enter the Payment Account, Payment Date, IGST amount, CGST amount, SGST amount and Memo.
  7. For Service Tax, VAT, CST, Swachh Bharat Cess, Krishi Kalyan Cess -enter the Payment Account, Payment Date, Payment Amount and Memo.
  8. Select Save to save your transaction.

How to match Tax Payments with Online Banking Transactions?

We would not be able to enter tax payments directly from Online Banking/Bank Feeds. Hence, we need to first enter the payment and match it with the downloaded transaction.

Here are the steps to match the tax payments with online banking transactions.

  1. Go to Banking.
  2. If you have multiple accounts connected then please select the bank account from which you made the payment
  3. Under For Review, look for the tax payment you have made to the tax department.
  4. If date and amount for tax payment entered by you in QuickBooks matches the tax payment downloaded from the bank, QuickBooks would suggest that you match the transactions.
  5. Please note that if there is a difference in the amount, the match should not be attempted unless another downloaded transaction that completes the difference is located.
  6. If there is a difference in date then click on the downloaded transaction and the section would expand.
  7. Select Find Match and a new window will come up for Match Transactions.
  8. Enter the date range in which you have entered payment in QuickBooks.
  9. Select the Transaction and then select Save.

If you do not see tax payments downloaded from online banking then please check your bank statement. If you see the transaction in the bank statement and not in QuickBooks please contact us.

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