Corporate practice bd
Unregistered Source Cutters:
Whose bills are processed
through the Accounting Officer
01.Cutters at unregistered sources also have to pay the bill and issue VAT-7.8
certificate within 6 months of receiving the supply. Otherwise the supplier
will not be able to adjust the amount deducted from the source. This will be
his financial loss.
02. Since the deductor at unregistered source has no filing and their bill is
passed through the accounting department, the money deducted from the source is
credited to the government VAT through book transfer or any other recognized
means.
03.When sending the bill to the accounting officer's office, mention the source
deduction information and the supplier's business identification number in the
bill form.
04.The Accounting Officer will deduct the source at the time of payment of the
bill and deposit the deducted amount in the Government VAT through book
transfer or any other recognized means.
05. The accounting officer will then notify the source of the
data source within 3 working days of depositing the money in the VAT sector and
will send the information from ibus system to VAT online system.
06.Issue a certificate in VAT-7.6 form within 3 working days
of receipt of deposit information at the source.
A certificate may be issued in favor of multiple suppliers
Withholding tax deduction information is transferred directly from the Accounts Department's iBass software to VAT online system so that the source deductor does not have to send any more report or copy of VAT-8.6 to VAT department.
Sections of law relating to withholding of VAT
2 (21) "Entity tax deductible entity" means:
(A) any government
entity;
(B) any NGO approved by the Bureau of NGO Affairs or the
Department of Social Services;
(C) any bank, insurance company or similar financial
institution;
(D) any post-secondary educational institution;
(E) any public limited company; Or
(F) entities under the larger taxpayer unit (value added
tax);
2 (22) "tax deduction certificate at source" means any certificate relating to tax deduction at source;
2 (93) "Official entity" means:
(A) the Government or any of its Ministries, Departments, or
Departments;
(B) any semi-government or autonomous body;
(C) any state-owned institution; Or
(D) local authorities, councils or similar bodies;
49. 6 (1) Subject to the provisions of sub-section (2),
01.a
supplier other than the source-deducting entity shall have more than Rs. In the
case of supply which is exempt from value or does not contain zero rate, the
tax deducting entity at source shall deduct at least one-third of the
tax-fraction of that supply from the payable to the supplier at source.
(2) Unless the
supplier is registered or enlisted and does not issue consolidated tax invoice
and source tax deduction certificate, the source tax deductible entity shall
not accept any supply from the supplier and shall not pay any price to the
supplier against such supply.
(The tax deducting entity at source shall make
adjustments to increase the amount of VAT deducted and pay the VAT deducted in
the following time and manner, namely: -
(A) when the source tax deductible entity is registered, at
the time of submission of the relevant tax term of the supply on which the
source tax has been deducted; And
(B) If the entity deducting the tax at source is not
registered, in the prescribed time and manner.
(3) The source tax deductible entity and the supplier shall
be jointly and individually responsible for deducting tax at source and
depositing it in the government treasury.
Deductible adjustment by the supplier after deduction of tax at source.
(1) If tax is deducted at source, the registered person may make
deductible adjustment in the prescribed manner equal to the amount deducted at
source.
(2) The adjustment shall be made during the tax period or
within the next six months of the tax period in which the tax is payable on any
supply, and after that period the adjustment claim shall be forfeited.
(3) If the supplier does not issue a consolidated tax invoice and tax deducting certificate at source with the tax deductible entity, the deductible adjustment may not be accepted.
A consolidated tax invoice and a tax deduction certificate at source.
(1) A registered person who makes a supply to a source
tax deductible entity other than a source tax deductible entity, shall have a
consolidated information containing the date on which VAT is payable on such
supply or prior. Issue tax invoices and tax deduction certificates at source.
(2) The size and type of consolidated tax invoice and tax
deduction certificate at source shall be determined by the Board.
(3) The supplier shall keep a copy of the consolidated tax invoice and the source tax deduction certificate along with his other records for a specified period of time which shall be attested by the person deducting the tax at source.
Rules for deducting VAT at source
01.Payment of value added tax deducted at source by the
unregistered supply recipient. Will do
(2) The source-deductible entity shall send to the nearest
value-added tax office within 7 (seven) working days of the issuance of the
source tax-deductible certificate, except the field of online deposit, such as
the information on submission of the VAT levied at the source (treasury invoice
and source tax deduction certificate).
Deduction and payment of value added tax at source on behalf of the recipient of unregistered supplies by the Accounting Officer
01. All the unregistered entities whose transactions or related bills are disposed of by the Accounting Officer at the source mentioned in clause (21) shall be subject to the deduction of value added tax at their source and the activities relating to payment to the treasury shall be performed by the concerned Accounting Officer.
(2) For the purpose of sub-rule (1), the deductible entity
at the relevant source shall mention the name and business identification
number of the person in whose favor the bill has been approved in the bill
submitted to the Accounting Officer.
(3) If approved for payment of the bill mentioned in
sub-rule (2), the Accounting Officer shall deduct the applicable value added
tax from it and deposit it in the Government treasury by book transfer or any
other recognized method.
(4) The Accounting Officer shall notify the deducting entity
at the concerned source within 3 (three) working days of payment of the bill and
transmit such information to the VAT computer system.
Deductible adjustment by the supplier after deduction at source.
Notwithstanding anything contained in Rule 37, for the purpose of sub-section (1) of section 50, the amount of VAT deducted subject to the provisions of sub-sections (2) and (3) of that section. Make adjustments in the submission of the relevant tax term.
Value Added Tax Accounting.
(1) The following books,
invoices, source tax deduction certificates and credit notes and debit notes,
whichever is applicable, shall be duly stored in the prescribed form and manner
at the place or places of its supply to any registered person. -
Certificate of deduction of tax at source.
The registered person
shall issue tax deduction certificate at source in the following manner,
namely: -
(I) The registered person shall issue a tax invoice in the form described in clause (c) in the form described in clause (c) when providing any supply to the cutting entity at any source;
(Ii) the registered or listed supplier shall issue a tax
deduction certificate at a source in favor of the supplier in the form
“VAT-7.8” within 3 (three) working days of payment of the bet;
(E) Form “VAT” within 15 (fifteen) days of payment of
deposit to the Government treasury, or, as the case may be, within 3 (three)
working days of being notified under sub-rule (4) of rule 37 Issue tax
deduction certificate at a source in favor of the supplier at -8.6 ”;
(F) The payer deducted under clause (e) shall be deposited
in the Government treasury along with the one registered under the
Commissionerate of Customs, Excise and VAT;
(G) notwithstanding the provisions of sub-clause (e), the
recipient may issue a tax deduction certificate at a source in accordance with
the tax invoice form "VAT-8.3" issued by the supplier against
multiple supplies deductible at source;