# Pakistani tax rules need to be implemented **URL:** \ **Category:** Uncategorized\ **Created:** [October 11, 2017, 9:51pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148 "2017-10-11T21:51:49Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 11, 2017, 9:51pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/1 "2017-10-11T21:51:49Z")
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. ---
**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\ **Post date:** [October 11, 2017, 10:13pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/2 "2017-10-11T22:13:49Z")
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. ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 11, 2017, 10:20pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/3 "2017-10-11T22:20:19Z")
but in pakistan its reality we really get these deductions ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 11, 2017, 10:21pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/4 "2017-10-11T22:21:51Z")
can i send you one excel file which will may clarify everything to you ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 11, 2017, 10:25pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/5 "2017-10-11T22:25:55Z")
[https://wetransfer.com/downloads/2d8adb48fa58aedf51d7ea8816a5c35320171011222439/e65f940834138c1ab61c656ac47142b520171011222439/1c8cca](https://wetransfer.com/downloads/2d8adb48fa58aedf51d7ea8816a5c35320171011222439/e65f940834138c1ab61c656ac47142b520171011222439/1c8cca) please download sample file it will clarify ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 11, 2017, 10:35pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/6 "2017-10-11T22:35:06Z")
* * * @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 ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 12, 2017, 12:27am UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/7 "2017-10-12T00:27:11Z")
@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. ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 12, 2017, 6:07am UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/8 "2017-10-12T06:07:51Z")
a page of official rule book ![1](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/2X/6/67e34b32873644725b54a4cc77d31be1d37a6d81.png) ---
**Author:** ![sharpdrivetek](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/sharpdrivetek/32/34244_2.png) [@sharpdrivetek](https://forum.manager.io/u/sharpdrivetek)\ **Post date:** [October 12, 2017, 6:24am UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/9 "2017-10-12T06:24:12Z")
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. ![image](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/2X/a/a0a6ebe4659391fd31f85af17574f5ef0e87f6d7.png) ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 12, 2017, 10:50am UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/10 "2017-10-12T10:50:20Z")
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. ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 12, 2017, 12:52pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/11 "2017-10-12T12:52:29Z")
@uzair94, there are two problems, one with what you are currently asking and the other with where you apparently think taxes are posted: 1. 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. 2. 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. ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 12, 2017, 1:47pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/12 "2017-10-12T13:47:58Z")
@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 deductions 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 ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 12, 2017, 1:53pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/13 "2017-10-12T13:53:47Z")
thats for sales invoice but if there is service invoice then there is different scenario total invoice 10000 inclusive of tax deductions pst@16%=1379.3 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 ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 12, 2017, 2:06pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/14 "2017-10-12T14:06:22Z")
> [@uzair94](#): > > thats for sales invoice but if there is service invoice then there is different scenario 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. ---
**Author:** ![uzair94](https://avatars.discourse-cdn.com/v4/letter/u/47e85d/32.png) [@uzair94](https://forum.manager.io/u/uzair94)\ **Post date:** [October 12, 2017, 7:44pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/15 "2017-10-12T19:44:27Z")
@tut just one option in tax codes will solve all my problem percentage of specific tax codes withheld. just one option ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [October 12, 2017, 9:01pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/16 "2017-10-12T21:01:35Z")
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. ---
**Author:** ![Premier](https://avatars.discourse-cdn.com/v4/letter/p/7c8e57/32.png) [@Premier](https://forum.manager.io/u/Premier)\ **Post date:** [February 17, 2018, 9:51pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/17 "2018-02-17T21:51:33Z")
@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 1. GST Withheld by customer $340 and posted to GST withheld receivable as asset in form of deposit slip 2. 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 ---
**Author:** ![Premier](https://avatars.discourse-cdn.com/v4/letter/p/7c8e57/32.png) [@Premier](https://forum.manager.io/u/Premier)\ **Post date:** [February 17, 2018, 9:59pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/18 "2018-02-17T21:59:53Z")
@Tut if @uzair94 adopt your suggestion then 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 e.g 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 ---
**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\ **Post date:** [February 17, 2018, 10:42pm UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/19 "2018-02-17T22:42:25Z")
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. ---
**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\ **Post date:** [February 18, 2018, 1:38am UTC](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148/20 "2018-02-18T01:38:50Z")
@Premier, why are you spending so much effort telling me what you think @uzair94 meant four months ago? [Next page](https://forum.manager.io/t/pakistani-tax-rules-need-to-be-implemented/12148.md?page=2)