Post Reply 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Sales tax & Income tax
03-01-2017, 03:35 PM
Post: #1
Sales tax & Income tax
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.

Find all posts by this user
Quote this message in a reply
Post Reply 

Messages In This Thread
Sales tax & Income tax - Agha88 - 03-01-2017 03:35 PM
RE: Sales tax & Income tax - kmzi2016 - 03-16-2017, 12:33 AM

Forum Jump:

User(s) browsing this thread: 1 Guest(s)