First of all, the water conservancy fund is not accrued according to the sales income of this month, but is levied at 0.6‰ of the sales income or operating income of the previous year and paid monthly. For enterprises with no sales income or operating income in the previous year, the water conservancy fund can be shared monthly according to the actual sales income or operating income of this year.
Secondly, enterprises, institutions and individual operators with sales income and operating income shall levy local water conservancy construction funds at 0.6‰ of their sales income or operating income in the previous year, and income refers to various incomes.
Water conservancy fund is a special fund for water conservancy construction, which consists of central water conservancy construction fund and local water conservancy construction fund. The central water conservancy construction fund is mainly used for the maintenance and construction of major river key projects related to the overall situation of national economic and social development. Local water conservancy construction funds are mainly used for urban flood control and the management, maintenance and construction of small and medium-sized rivers and lakes. The management expenses of major water conservancy construction projects across river basins and provinces (autonomous regions and municipalities directly under the Central Government) and key protection projects of transnational rivers and border rivers in China shall be borne by the central and local governments.
"Measures for the Administration of Raising and Using Water Conservancy Construction Funds" Article 7 The revenue and expenditure of water conservancy construction funds shall be included in the budget management of government funds, which shall be used for special purposes, and the year-end balance shall be carried forward to the next year. Water administrative departments at all levels shall, according to the water conservancy construction plan, prepare the annual expenditure budget of the water conservancy construction fund, which shall be included in the government fund budget after being audited by the financial department at the same level. The financial department shall allocate funds according to the approved budget of the water conservancy construction fund and the actual collection and storage of the fund. Among them, the water conservancy construction fund for fixed assets investment projects should be included in the fixed assets investment plan. The water administrative departments at all levels shall, according to the implementation of the annual water conservancy construction fund budget, prepare the final accounts of the water conservancy construction fund and report them to the finance department at the same level for review.
Water conservancy fund = income excluding value-added tax * collection rate implemented locally.
The actual collection rate may be slightly different from place to place. When drawing water conservancy funds, the accounting treatment is:
Borrow: taxes and surcharges
Loan: taxes payable-water conservancy fund
When actually paying the water conservancy fund, the accounting treatment is:
Borrow: taxes payable-water conservancy fund
Loans: bank deposits