Difference between revisions of "Withholding Tax"

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(Payment of Withholding Tax)
(Payment of Withholding Tax)
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:6. You can check the ledger report for Withholding Tax Payable balance.
:6. You can check the ledger report for '''Withholding Tax Payable outstanding balance'''.
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Revision as of 03:52, 6 June 2020

Initial Setup

Withholding Tax Account

Menu : GL | Maintain Account...

GL Account Description Remark
460-XXX WITHHOLDING TAX PAYABLE Under Current Liabilities
GL Account not compulsory to follow. 

Available in: Menu : [Purchase | Purchase Invoice...] or [Supplier | Supplier Invoice...] Menu : [Purchase | Cash Purchase...] or [Supplier | Supplier Invoice...] Menu : [Purchase | Purchase Debit Note...] or [Supplier | Supplier Debit Note...] Menu : [Purchase | Purchase Returned ...] or [Supplier | Supplier Credit Note...]

Withholding Tax Purchase Entry

1. In Purchase Invoice, insert the following columns:
  • WH Local Tax Amt
  • WH Tax
  • WH Tax Rate
2. Select the Withholding Tax Code in WH Tax column.
3. System will auto post the withholding tax double entry. Press CTRL + O to check the double entry.
GL Description Local DR Local CR
Withholding Tax Expense XXX
Withholding Tax Payable XXX

Withholding tax amount will not add into the purchase invoice amount.

Payment of Withholding Tax

[ GL | Cash Book Entry..]

1. Create new PV.
2. Enter Payee name.
3. Select bank account to pay.
4. In detail grid, select the GL Account (Withholding Tax Payable).
5. Enter the withholding tax amount to be paid. Save it.

6. You can check the ledger report for Withholding Tax Payable outstanding balance.

See also