Tax payable not showing actual. For example. I have paid Rs. 4000 (4%) as purchase tax against one purchase . At the time of sale I collected Rs. 14500 (14.5%) as Sale tax for the same items. Actually, later I should remit Rs.14500 in sale tax department but in Manager ’ Tax payable’ shows as Rs.10500
Why 10,500 is incorrect? You collected tax 14,500 from customer. You paid tax 4,000 to supplier.
14,500 - 4,000 = 10,500
You need to give more context, based on what you said I see no issue.
You are right but actually I should pay Rs. 14500 before sale tax department. When I am paying Rs. 14500 to Sale tax Dept, Manager will show overpayment of Rs. 4000
Why do you have to pay Rs. 14,500? Why don’t they give you credit for tax which you paid to suppliers?