Pakistan Tax

According to new Tax rules for 3rd schedual items Sales Tax 17% of MRP will be deducted by manufacturer and same tax amount will be charged from the customer. due to which the distributers have to issue invoice with same Sales Tax amount to customer. Problem is that how can we mention fixed amount Sales Tax in the Sales & Purchase Invoices kindly help.


Your question does not make sense. Why would a supplier deduct sales tax? What would they deduct it from? And why would you charge your customer the same amount, since you are probably selling it for more than you bought it? As a taxation scheme, this is illogical. Can you provide a link to an official source that explains this concept?

I am distributor of Lubricants, previously 17% sales tax was charged on sales price but as per finance Act 2019 Lubricants are now placed in 3rd Schedule as per this act now the manufacturer will pay sales tax on MRP. Now the company gave us discounted price and we sell giving discount to Industry but the sales tax will remain the same(paid at Manufacturer end) as we have to generate the sales Invoice mentioning Price and Sales Tax. Problem is that when I have to mention sales tax in system it gave options in % whereas I need manual feeding for sales tax.

Thats why I requested to kindly help me in this how can I put sales tax fixed amount in Purchase and sales invoices.

for your reference I am attaching the Finance Act 2019, 3rd Schedual list 2019 and FBR explanation on Sales Tx 2019.

(Attachment ST-3RD SCHEDULE-2019.pdf is missing)

(Attachment FBR Explanation on Sales Tax.pdf is missing)

(Attachment KPMG Finance Act 2019.pdf is missing)

i am not sure about the laws in your country but going by your explanation i can suggest to create a custom tax code of 100% and enter the tax amount as a separate line in your sales invoice with the same tax code selected.


@Salman_Aslam, you did not provide any links. You apparently tried to attach images of three things. The only way to attach images is to use the upload feature in the composing pane tool bar. You cannot attach anything if you are responding via email. You must be signed into the forum. However, images are not what is needed. Instead, we need documentation of the complete workings of this highly unusual taxing scheme.