there should be tax rules option because in pakistan there is rule that 5th part of GST is deducted by customer and remaining is given to supplier so they can file their return.
I am getting really confused here:
GST & PST
WHT @ 4.5% & 10%
20% of GST deduct as WHT
Surely you can’t have WHT @ 4.5% & 10% + 20% of GST deduct as WHT on the one invoice.
but in pakistan its reality we really get these deductions
can i send you one excel file which will may clarify everything to you
https://wetransfer.com/downloads/2d8adb48fa58aedf51d7ea8816a5c35320171011222439/e65f940834138c1ab61c656ac47142b520171011222439/1c8cca please download sample file it will clarify
@Brucanna also sir 5th part of GST which is deducted i do it manually first it goes to a GST-WHT account and then settled into gst payable account
@uzair94, there are hundreds, if not thousands, of Pakistani users. No one has ever requested the features you are asking for. If you can’t produce the official documentation requested, we have no choice but to assume you are not interpreting the tax laws or accounting procedures correctly.
what is described in the official rule book you have provided is already possible in Manager.
you just have to enter the WHT as an amount and not as a percentage.
yes we can but problem is that rule book describes gst withheld which will go to gst payable account and default withholding column will deduct income taax withholding amount.
@uzair94, there are two problems, one with what you are currently asking and the other with where you apparently think taxes are posted:
Withholding tax, as implemented in Manager, only applies to sales invoices sent to customers. The reference is describing actions by a company towards suppliers. These would be implemented on a purchase invoice. The withholding tax feature has not been extended to purchase invoices. Therefore, you will need to create a separate liability account and add line items to your purchase invoices for the amounts withheld. These amounts would be entered as negative numbers on the purchase invoice and posted to the liability account just mentioned. Of course, you will need to calculate the amounts manually. This shortcoming has been acknowledged by the developer and a fix has been promised.
No tax calculated and applied automatically by Manager has anything to do with income tax. GST applied with a tax code goes to Tax payable. Withholding tax goes to Withholding tax receivable. Manager does not calculate income taxes, because schemes around the world vary so much. The program is not income tax software.
@Tut but sir think around another angle i need these things on sales invoice as my customer ill deduct amounts according to rules lets say i send them invoice of 10000 includes gst.
the deduction will be as following
total amount 10000
inclusive gst 1452.9
5th part of gst 1452.9/5=290.5
withholding tax @ 4.5% =10000*4.5%=450
Payable Cheque = 10000-450-290.5=9259.5
thats for sales invoice but if there is service invoice then there is different scenario
total invoice 10000 inclusive of tax
Withholding tax @ 10%=100
total cheque = 10000-1379.3-100=8520.7
now the problem is that both type of invoices have different procedures as you can see sales invoice give us remaining 4 parts of gst so we can pay to government whereas in service invoice our customer deduct whole tax and pays to government
In accounting, there is no distinction between sales invoices for goods or services. So it is not relevant to speak of service invoices. The only differences between your examples are that tax rates are different and withholding rates are different. Every line item on a sales invoice (whether for goods or services) can have a different tax code with a different rate. But for withholding tax you have only two choices:
- A percentage of the entire amount, including all taxes, or
- A fixed amount.
If you have different withholding rates for different line items, you will have to use the second option and calculate the amount manually. Explain your calculation in the Notes. Some day, things might be different. Right now, you have no other option.
@tut just one option in tax codes will solve all my problem percentage of specific tax codes withheld. just one option
You should stop begging me. I am not the developer. I am just a forum moderator and haven control over what is added to the program. But, as I have explained several times, what you ask for would require a major restructuring of the program.
@Tut @uzair94 is telling that
He create Sales Invoice of e.g $10000
G Sales tax @17 % on $10000 = $1700
Total invoice with GST will be $10000 + $1700 =$11700
Now our country law,
If customer is Limited company then it will withheld 20% of GST amount as follow
$1700 x 20% = $340 (Customer will deposit $340 to govt dept and provided the payslip to the supplier)
Here point is that from Total GST payable $1700 will be divided into two parts
- GST Withheld by customer $340 and posted to GST withheld receivable as asset in form of deposit slip
- GST payable balance ($1700 - $340 = $1360) will go to tax payable as liability
where as customer also withhold tax @4.5% of Total sales invoice amount inclusive of GST also as follow
$ 11700 x 4.5% = $526.5
Now the pay cheque will be
$11700 - $340 - $526.5 = $10833.50
using tax code the sales tax auto calculated go to the tax payable and using with hold tax percentage or amount (calculated manually) then the amount will go to the withhold tax receivable asset account.
actually doing so the GST in tax payable will remain same which must be less of the same amount as go to withhold tax receivable
GST autocalucated is $1700 this go to tax payable liability a/c
using your suggestion $340 with held will go the withhold receivable asset a/c
if this will correct the tax payable a/c will be $1700-$340 = $1360
Just a question,
“If customer is Limited company then it will withheld 20% of GST amount”
a) Does the Supplier have to show this GST withheld amount as part of the Sales Invoice total, or
b) Does the Limited Company Customer receive the Sales Invoice for the full amount ($11,700) and on paying the Sales Invoice makes this GST withheld.