01-27-2012, 12:59 PM
Dear Mr. Awais Aftab Aoa, hope you r in good health and spirit!
Please be kind (as always) to resolve my one little query!
I received an invoice as under;
Amount S.T 16% Total
Rs. 400,000- 64,000- Rs. 464,000-
With a late delivery, a deduction of Rs. 20,000- has to be made from due payment. Please guide from which amount i can withhold tax?
1. Would it be straight deduction from gross i.e Rs. 464,000- (464000-20000=444000 @ 3.5%)
2. Would it be on amount before sales tax i.e Rs. 400,000- (400000-20000=380000 x 16%=440800 @ 3.5%)
I shall be very thankful for your prompt reply.
Please be kind (as always) to resolve my one little query!
I received an invoice as under;
Amount S.T 16% Total
Rs. 400,000- 64,000- Rs. 464,000-
With a late delivery, a deduction of Rs. 20,000- has to be made from due payment. Please guide from which amount i can withhold tax?
1. Would it be straight deduction from gross i.e Rs. 464,000- (464000-20000=444000 @ 3.5%)
2. Would it be on amount before sales tax i.e Rs. 400,000- (400000-20000=380000 x 16%=440800 @ 3.5%)
I shall be very thankful for your prompt reply.
