Accountancy Forum

According to SRO-603 we being an LTU COMPANY will withheld the GST of unregistered suppliers.The procedure will be as follows

taxable purchases from unregistered supplier 1000/-
gst applicable rate 16% 160/-
one fifth tax withheld by LTU COMPANY 32/-
GST PAID to the supplier 1128/-
we will submit the GST With held i,e 32/- in our monthly GST RETURN
IN ROW 18 sales tax withheld by the return filer as withholding agent.
but the question is how we will show this in our Invoice summary statement at the time of e-filing the return.
second question is unregistered persons are already very much unwilling to pay their withholding tax on supplies. SRO 603 will further burden them on GST. They will simply refused to pay GST and will most probably refuse to supply the item to LTU. IN other words LTU will have bear this withheld GST from their own pocket.

if anyone can help me out, i shall be highly obliged.

regards
Ganpat.

Hi Sallam, according to SRO mention above,,,,
A withholding agent, including a person registered in a Large Taxpayers Unit and a recipient of advertisement services, who purchases goods and services from unregistered person, shall deduct sales tax at the applicable rate of the value of taxable supplies made to him from the payment due to the supplier
If u purchase from unregisterd supplier.
The procedure will be as follows

Taxable purchases from unregistered supplier 1000/-
GST applicable rate 16% 160/-
Total GST withheld by Withholding Agent 160/-
PAID amount to the supplier 840/-
U will submit the GST With held 160/- in Your monthly GST RETURN IN ROW 18 sales tax withheld by the return filer as withholding agent.