@tut because you are a moderator, as you early told and leader. And it is development.
By elaborating, I want and workable.
If given option in drop down list after checking the withholding tax deductible as follow,
*Withholding GST amount
1.Rate
2. Amount
""GST withheld go to withheld GST receivable account
“” Remains GST amount go to tax payable liability account.
Developer can use this for both Sales and purchase invoices.
On the assumption that you could do a “GST withholding” what happens to the amounts (340 per example) that get posted to this “GST Withheld” receivable account ?
Also, what happens if the Customer doesn’t pay the GST Withholding (340) to the Tax Authority ?
@Brucanna @uzair94
earlier practice was of option b. I also adopt option b to give invoice
Now it is supplier who have option to select rate 20% or 10% of Sales tax amount. which was automatically will be a liability to customer to deposit in govt and provide that evidence in paper to the supplier.
better is option a
the customer Is liable to deposit that $340 in the designated bank and then give the proof of the payment to the supplier… further when the customer pay that amount in show in its GST return to govt then that amount will automatically updated to Nill in the supplier GST account in govt FBR.
If customer does not deposit $340. then after 2 month it will appear in the liability of the supplier GST account of the Govt FBR and now the supplier have to deposit that 340 in designated bank. It might be some consequence to the customer
And this is the only option where all the mechanics of the accounting can work best. All aspects of the Sales Invoice and the GST remain traceable throughout the whole process.
But with this option all the mechanics of the accounting can’t work at best. You have no accounting management over the customer’s GST contribution.
The resolution to this mixed payment of the GST is not via any withholding functionality as that only pertains to a single payer, but probably more so by a co-contribution functionality where the Sales Invoice’s GST gets proportioned ($ or %) into separate liability accounts.
Supplier Payable GST 1360
Customer Payable GST 340
Meanwhile option b is the closest to this, albeit requiring an additional manual process.
PS: Moderators are only users like any other user and have little influence on Manager’s development priorities.