G2Virtu - Purchase Taxes and Charges Template

Purchase Taxes and Charges may be applied to any item you buy in Pakistan.

The Purchase Taxes and Charges Template is similar to the Sales Taxes and Charges Template. The templates created from this form can be used in Purchase Orders and Purchase Invoices for internal records and compliance with Pakistan’s Sales Tax and Income Tax regulations.

For Tax Accounts that you want to use in the tax templates, ensure that the Account Type field is set as "Tax" for that particular account.

🧭 How to Access

Home > Buying > Settings > Purchase Taxes and Charges Template

1️⃣ How to Add Purchase Taxes/Charges via a Template

Before creating a new template, note that templates may already exist for common tax types such as Sales Tax, Advance Income Tax, or FED (Federal Excise Duty).

Click on New.

Enter a title name for the tax (e.g., Sales Tax 18% or WHT Supplier 4.5%).

Under Type, set on what the tax will be calculated and define the Tax Rate.

There are five options for tax calculation:

Actual: On the actual amount of each item.

On Net Total: On the grand total of all items.

On Previous Row Amount: For compounding charges. For example, applying FED on an amount that already includes Sales Tax.

On Previous Row Total: Similar to the above but calculated on the total bill, not just individual items.

On Item Quantity: Apply a fixed charge per quantity (if applicable).

Select an Account Head with a preset tax rate (for example, Sales Tax - Purchases or WHT Payable to FBR).

Enable Default if this template should automatically apply to new Purchase transactions.

Click Save.

💡 Note: The “Is Inter State” option used in Indian localization does not apply in Pakistan and can be ignored or hidden.

2️⃣ Features 2.1 Purchase Taxes and Charges Table Field Description Consider Tax or Charge For Choose whether to apply the tax on Total, Valuation, or Valuation and Total. Add or Deduct Whether you want to add (tax/charge) or deduct (discount/withholding) the amount. Reference Row # If tax is based on a “Previous Row Total”, select the row number that serves as the base (default is the previous row). Is This Tax Included in Basic Rate? If checked, the tax amount is considered already included in the item’s rate or amount. Account Head The ledger account under which the tax will be recorded (e.g., Sales Tax Payable, Advance Tax Deducted at Source). Cost Center The cost center where this tax or expense should be recorded. Description A short description of the tax (appears in invoices or reports). Rate The tax rate, e.g., 18 for 18%. Amount The calculated amount, e.g., 100.00 = PKR 100 tax.

🧾 Common Examples in Pakistan