Withholding Tax: Difference between revisions

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| 460-XXX || WITHHOLDING TAX PAYABLE || Under Current Liabilities
| 460-XXX || WITHHOLDING TAX PAYABLE || Under Current Liabilities
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| 980-XXX || WITHHOLDING TAX (EXPENSE)  || Under Expenses
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| Tax Rate || Withholding Tax Rate  || 15%  
| Tax Rate || Withholding Tax Rate  || 15%  
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| Tax Account (DR) || Set to '''Withholding Tax Payable''' account  || At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities
| Tax Account (DR) || Set to '''Withholding Tax (Expense)''' account  || At GL\Maintain Account, create the Withholding Tax account under Expenses
|-
|-
| Tax Account (CR) || Set to '''Withholding Tax Payable''' account  || At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities
| Tax Account (CR) || Set to '''Withholding Tax Payable''' account  || At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities
|}
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::[[File: WTH-Tax_03a.jpg| 400PX]]
::[[File: WTH-Tax_03.jpg| 400PX]]
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:3. Click on '''Save'''.
:3. Click on '''Save'''.

Revision as of 01:17, 4 March 2023

Initial Setup

Withholding Tax Account

Menu : GL | Maintain Account...

GL Account Description Remark
460-XXX WITHHOLDING TAX PAYABLE Under Current Liabilities
980-XXX WITHHOLDING TAX (EXPENSE) Under Expenses
NOTE: 
GL Account not compulsory to follow. 


Maintain Withholding Tax

Menu : Tools | Maintain Withholding Tax...

1. Click New.
2. Input the following data:
Field Name Explanation Remark
Code Set a code WTH-TAX15
Description Describe the meaning/usage of this code Withholding Tax 15%
Tax Rate Withholding Tax Rate 15%
Tax Account (DR) Set to Withholding Tax (Expense) account At GL\Maintain Account, create the Withholding Tax account under Expenses
Tax Account (CR) Set to Withholding Tax Payable account At GL\Maintain Account, create the Withholding Tax Payable account under Current Liabilities
400PX


3. Click on Save.


Withholding Tax Purchase Entry

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...]

1. In Purchase Invoice, insert the following columns:
  • WH Local Tax Amt
  • WH Tax
  • WH Tax Rate
300PX
2. Select the Withholding Tax Code in WH Tax column.
500PX
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
500PX


NOTE:
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.
500PX


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


See also