Some countries like my country with held some precentage of gst i.e 20% of gst and also 4.5% withholding tax of total bill how i can manage these things in system
Handle GST with tax codes. Read the Guide at:
Handle withholding on the sales invoice entry screen:
Choose Rate or Amount and fill in the rate or amount.
i already have made a tax code for gst and using withholding box for deducting 4.5% tax . the problem is that i want that system should automatically deduct 1/5th of normal 17% gst tax. i explain whwn ever i made a invoice to customer i.e of 100$. he will deduct following amounts.
4.5% of 100$=4.5$
total GST=14.53$
1/5th of GST=14.53/5=2.90$
Total payable=100-4.5-2.90=92.6$
hope you can understand
1/5th should be deducted moreover from gst payable as it is part of recoverable tax submit to tax authority by agent. remaining tax portion which we receive can be adjusted by purchases.
Please Respond.
Your explanation of the situation is confusing. You mention 17% GST, but say it is 14.53 on a 100 sale. Please explain. You also say 4.5% withholding applies to total bill, but seem to apply it only to the 100. The purpose of 1/5 of GST is not explained at all. Why is it being deducted from payment by the customer, and what for? Without that knowledge, it is impossible to offer suggestions about how to handle things in Manager.
17% tax count as inclusive on total sale.
also there is law in our country to withheld 1/5th of GST
there should be option on tax codes that will ask user that how much tax can be withheld.
sorry for my bad english as english is not my first language.
and 4.5% also applicable on total bill.
the manager software is deducting correct 4.5% withholding tax but gst part needs to be improved
I apparently do not understand your problem, because I believe everything you need is already there.
i just want that in tax codes there should be a option which will ask user to that how much percentage of particular tax is being withheld by customer
I would not expect action on such a request soon, if ever. What you are asking for implies multi-tier calculations: percentage withholding deduction on a percentage tax assessed on an individual line item basis. No one else has ever requested such a thing, so far as I can remember.
The problem is this - you are charging 17% but are only getting paid 17% less 1/5 (3.4%) or 13.6%.
Now you could charge 13.6% on the Sales Invoices but that leaves it open for the Customer to deduct another 1/5 upon payment.
Your best solution is to send the Invoice with the 17% and the 4.5% - as in your example $95.50.
Then when you receive the payment of $92.60, put $95.50 to the invoice so that it is paid and put an adjusting amount of -$2.90 (note the minus) to the tax account. Now the tax account would equal the 13.6%.
Doing it this way also allows for Customers who don’t deduct the 1/5.
Thanks for the information. I already tried this method and it works for me thanks.
uzair actually want that there should be option in Withholding tax to be selected on whole of invoice amount or just on Sales tax amount which is auto calculated by using Sales tax through tax codes.
Withholding tax on total invoice mean Income tax deducted by the customer while paying to the supplier and depositing that withhold tax in the bank and providing the payment challan to the supplier.
where as in GST withheld, Part of the GST amount (in term of percentage) which is auto calculated by sales tax option using tax code will be withheld by the customer and the remaing bill is payed where as withheld sales tax is deposited in the bank and the receipt will be provided to the supplier where as balance GST will deposit by supplier