Sales tax & Income tax - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Tax (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=8) +--- Thread: Sales tax & Income tax (/showthread.php?tid=20065) |
Sales tax & Income tax - Agha88 - 03-01-2017 I have started working in an audit firm and I am currently verifying vouchers at client. I have seen two treatments of sales tax by the accountant. 1) He withholds the total amount of sales tax charged (eg: 17%) and pays the remainder to the vendor. 2) Or either he withholds 1/5 of the sales tax charged (eg: 17% *1/5) and pays the remainder to the vendor. I asked for any supporting evidence regarding his two different treatments but he failed to mention any rules or sections supporting his treatment. Kindly advise which treatment is correct 1 or 2 and under what sections are these sales tax rules mentioned in the sales tax act. Regards, RE: Sales tax & Income tax - kmzi2016 - 03-16-2017 According to the Sales Tax special procedure withholding rule, every company is responsible to withhold 1/5 of sales tax amount and deposit to the Goverment treasure on supplier behalf it is also part of law if supplier of the goods is un-registered 17% will be witho |