02-05-2012, 09:56 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 Jay</i>
<br />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.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Option 2 is correct because sales tax will be on the total amount after penalty and u can't charge sales tax on penalty so first u need to deduct penalty from Amount then charge Sales tax and then deduct WHT.
<br />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.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Option 2 is correct because sales tax will be on the total amount after penalty and u can't charge sales tax on penalty so first u need to deduct penalty from Amount then charge Sales tax and then deduct WHT.
