Sales tax & Income tax

[Agha88]

I have started working in an audit firm and I am currently verifying vouchers at client. I have seen two treatments of sales tax by the accountant.

1) He withholds the total amount of sales tax charged (eg: 17%) and pays the remainder to the vendor.

2) Or either he withholds 1/5 of the sales tax charged (eg: 17% *1/5) and pays the remainder to the vendor.

I asked for any supporting evidence regarding his two different treatments but he failed to mention any rules or sections supporting his treatment.

Kindly advise which treatment is correct 1 or 2 and under what sections are these sales tax rules mentioned in the sales tax act.

Regards,

[kmzi2016]

According to the Sales Tax special procedure withholding rule, every company is responsible to withhold 1/5 of sales tax amount and deposit to the Goverment treasure on supplier behalf it is also part of law if supplier of the goods is un-registered 17%
will be witho