Accountancy Forum

is Punjab Sales Tax charged tax on tax?

Case:
We are working as Advertising agency in Karachi and registered in Sindh Sales Tax.

Our Client is in Lahore and registered in Punjab Sales Tax.

News Paper Ad PKR.85,000/-
Service Charges PKR.15,000/-
Sindh Sales Tax PKR.2,100/-
Our Invoice PKR.102,100/-

Our Client deducting
PKR.2,100/- @ 14% on PKR.15,000/-
&
PKR 8,168/- @ 8% on PKR.102,100/-

Is it correct?

(12-08-2015, 01:38 PM)shahidonline Wrote: [ -> ]is Punjab Sales Tax charged tax on tax?

Case:
We are working as Advertising agency in Karachi and registered in Sindh Sales Tax.

Our Client is in Lahore and registered in Punjab Sales Tax.

News Paper Ad PKR.85,000/-
Service Charges PKR.15,000/-
Sindh Sales Tax PKR.2,100/-
Our Invoice PKR.102,100/-

Our Client deducting
PKR.2,100/- @ 14% on PKR.15,000/-
&
PKR 8,168/- @ 8% on PKR.102,100/-

Is it correct?

The above deduction are correct STWH withholding and I.Tax withholding
are done at the time of payment

YES , IT IS RIGHT 14% ON SERVICES SRB AND 8 % OF INCOME TAX ON TOTAL INVOICE

Yes , As per PRA recipient of advertisement services withheld 100 % sales tax.