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Sales tax & Income tax
03-01-2017, 03:35 PM,
#1
Sales tax & Income tax
I have started working in an audit firm and I am currently verifying vouchers at client. I have seen two treatments of sales tax by the accountant.

1) He withholds the total amount of sales tax charged (eg: 17%) and pays the remainder to the vendor.

2) Or either he withholds 1/5 of the sales tax charged (eg: 17% *1/5) and pays the remainder to the vendor.

I asked for any supporting evidence regarding his two different treatments but he failed to mention any rules or sections supporting his treatment.

Kindly advise which treatment is correct 1 or 2 and under what sections are these sales tax rules mentioned in the sales tax act.

Regards,
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Messages In This Thread
Sales tax & Income tax - by Agha88 - 03-01-2017, 03:35 PM
RE: Sales tax & Income tax - by kmzi2016 - 03-16-2017, 12:33 AM

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