07-23-2011, 04:02 PM
In budget 11-12 FED & SED has been replaced by Provincial Tax for SINDH. We r in Punjab & received *wharf age invoices containing Provincial Sales Tax. Is there any change for adjusting this amount or not?
07-23-2011, 04:02 PM
07-23-2011, 05:47 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by olympia</i>
<br />In budget 11-12 FED & SED has been replaced by Provisional Tax for SINDH. We r in Punjab & received *wharf age invoices containing Provisional Sales Tax. Is there any change for adjusting this amount or not?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
For the purpose of Sales Tax Act, 1990, the registered person making taxable supplies and collecting output tax may deduct input tax from it to determine its tax liability. [section 7]. Now the question is whether tax paid on services is input tax?
Yes the tax levied on services by provinces is also treated as input tax under Sales Tax Act, 1990. Therefore adjustment of Provincial sales tax may be claimed against payment of out put tax collected while making taxable supplies under Sales Tax Act, 1990.
Input tax is defined at section 2(14) of Sales Tax Act, 1990 as follows
Input tax in relation to registered person means
a) ....
b) ....
d)Provincial sales tax levied on Services
<br />In budget 11-12 FED & SED has been replaced by Provisional Tax for SINDH. We r in Punjab & received *wharf age invoices containing Provisional Sales Tax. Is there any change for adjusting this amount or not?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
For the purpose of Sales Tax Act, 1990, the registered person making taxable supplies and collecting output tax may deduct input tax from it to determine its tax liability. [section 7]. Now the question is whether tax paid on services is input tax?
Yes the tax levied on services by provinces is also treated as input tax under Sales Tax Act, 1990. Therefore adjustment of Provincial sales tax may be claimed against payment of out put tax collected while making taxable supplies under Sales Tax Act, 1990.
Input tax is defined at section 2(14) of Sales Tax Act, 1990 as follows
Input tax in relation to registered person means
a) ....
b) ....
d)Provincial sales tax levied on Services