Taxation for NGOs

[Jay]

Dear Mr. Awais Aftab Aoa, hope you r in good health and spirit!

Please be kind (as always) to resolve my one little query!

I received an invoice as under;

Amount S.T 16% Total
Rs. 400,000- 64,000- Rs. 464,000-

With a late delivery, a deduction of Rs. 20,000- has to be made from due payment. Please guide from which amount i can withhold tax?

1. Would it be straight deduction from gross i.e Rs. 464,000- (464000-20000=444000 @ 3.5%)
2. Would it be on amount before sales tax i.e Rs. 400,000- (400000-20000=380000 x 16%=440800 @ 3.5%)

I shall be very thankful for your prompt reply.

[BILAL.SARDAR]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Jay</i>
<br />Dear Mr. Awais Aftab Aoa, hope you r in good health and spirit!

Please be kind (as always) to resolve my one little query!

I received an invoice as under;

Amount S.T 16% Total
Rs. 400,000- 64,000- Rs. 464,000-

With a late delivery, a deduction of Rs. 20,000- has to be made from due payment. Please guide from which amount i can withhold tax?

1. Would it be straight deduction from gross i.e Rs. 464,000- (464000-20000=444000 @ 3.5%)
2. Would it be on amount before sales tax i.e Rs. 400,000- (400000-20000=380000 x 16%=440800 @ 3.5%)

I shall be very thankful for your prompt reply.
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Option 2 is correct because sales tax will be on the total amount after penalty and u can't charge sales tax on penalty so first u need to deduct penalty from Amount then charge Sales tax and then deduct WHT.

[BILAL.SARDAR]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by LapTop</i>
<br />agar Contract 6 months ka hay to aap 6 months ki salary ko taxable income layn gay, or usi par tax calculate karyn gay,,,,

Ye employee ki liability hay k us k baad agar wo koi or job karta hay to is salry to apni new job ki salary k sath associate kar k taxable income nikaly,

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What I think its a bit different
As per income tax ordinance the estimated salary is calculated and its the responsibility to ask for WHT slips from New employee for calculation basis (of course if one worked before this job and CV is good thing to judge this thing) and again its responsibility of employer to give the employee leaving the corporate within 1 month the WHT slips and if it does not provide then there is penalty in this case. And for tax year 2012 the its the responsibility of employer to furnish annual return for tax withheld by it from employee pay (which was responsibility of employee earlier).