Sales Tax Special Procedure (Withholding) Rules,

[noman]

This is my understanding, please clarify

1.Govt dept,autonomous body,public sector organisation---------->deduct 1/5th of sales tax amount from payment to a registered supplier of goods.


2.Govt dept,autonomous body,public sector organisation---------->deduct whole amount of sales tax amount from payment to a unregistered supplier of goods.


3.Recipient of advertising service-------------> deduct whole amount of sales tax (calculated as 17% of value of service) from payment made to a registered/unregistered service provider


4.LTU person-----------> deduct 1% of amount of value of supply of goods received from registered supplier.

by inference,

1.LTU person can not deduct tax from another LTU

2.LTU person can not deduct tax from an unregistered person

final Question,

if an LTU person receives advertisement service.....will he deduct 1% or 17% from the payment to be made?

Thanks in advance