1. The tax basis of water conservancy construction fund is income excluding tax. The water conservancy construction fund is accrued at 0. 1% of the sales revenue.

2. The tax basis of water conservancy construction fund is calculated and paid according to 1% of the actual amount of value-added tax and consumption tax.

Second, the accounting treatment of water conservancy construction fund,

Accrual:

Debit: taxes and surcharges,

Loan: taxes payable-local water conservancy construction fund,

When actually paid:

Borrow: taxes payable-local water conservancy construction fund,

Loan: bank deposit.