Sales tax & Income tax
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03-01-2017, 03:35 PM
Post: #1
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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. Regards, |
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03-16-2017, 12:33 AM
Post: #2
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RE: Sales tax & Income tax
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 |
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