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 confussion about GST SRO 603
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ganpat
Unregistered Trainee

Pakistan
1 Posts

Posted - Jul 31 2009 :  12:12:27 PM  Show Profile
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.

LapTop
Partner

Pakistan
1545 Posts

Posted - Jul 31 2009 :  7:21:15 PM  Show Profile  Visit LapTop's Homepage  Send LapTop a Yahoo! Message
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.

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