Sales tax on Retail price

1

Hi there
Sales tax is applicable on Retail price instead of sale price How to Manage this please guide

Thanks
Sajid

2

According to the FBR Sales Tax Guide (https://download1.fbr.gov.pk/Docs/201012211412172902008stax.pdf), GST is levied on the value of a supply action. For certain goods on the Third Schedulde, that is defined as the retail price printed on the item rather than the price actually paid.

But Manager calculates taxes based on discounted unit prices. Therefore, you cannot apply a discount on a line item for such goods as you otherwise would. So, enter the printed retail price as the unit price and apply the appropriate tax code. Then add a separate line item for the discount.

Enter the discount as a negative number. You can post the discount line item either to an income or expense account. The effect on net profit will be the same.