An advance income tax is imposed here in Pakistan. we need to charge 2.5% on all invoices to non filler. advance income tax should be on inclusive all taxes amount how we may mange this please advise Thanks

@lubos here are few suggestions for tax handling which would help users from many countries with complex taxation system Each Tax component as individual tax code and then Tax code groups to be created. (Just like Inventory kits, to make different combinations of those tax components defined). All…

Now in above case it can be handled if there is tax code selected on each line (Then only we have to define Witholding I.T as tax component). But if tax code is not applied to every line, then its hard to get the correct tax amounts as Withholding tax needs to be calculated on whole value of transac…

Best soulition is 1. Selecting Tax codes on transaction level (Just like current Withholding tax but with ability to define more than one tax codes). How we may implement ? Please guide.

[image] Or if you are charging Further tax then this [image] Or this [image] shahabb: Only method left is to enter tax amount manually on separate line.

or may be we may have allowing negative percentage and permission to change the name of Withholding tax

Continuing the discussion from Advance income tax : Entering manually is not possible in long term need a solution

What you want can be handled by the ways i have suggested in Post#5. But in edge cases it might cause issues. Thats why i made those suggestions in Post#2.

I’m leaning towards solving this by negative withholding tax. How do the mechanics work? Invoice is for 10,000 PKR. Then we add 2.5% on top of it. So the invoice total is 10,250 PKR but… Customer pays 10,000 PKR to supplier and then 250 PKR to tax authority?

Customer paid 10250, and bill nill. We paid 250 rupees government challan in month end.

When you pay 250 PKR, do you specify to tax authority for which customer this payment is for?

Advance income tax

ideas

shahabb July 3, 2024, 9:06am 5

Or if you are charging Further tax then this

Or this

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Advance income tax

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